CANADA STOCKS-TSX may open higher, buoyed by upbeat China data

Thu Nov 22, 2012 8:37am EST

Nov 22 (Reuters) - Canada's main stock index looked set to open higher on Thursday, extending gains from the previous session, as positive data emerging out of manufacturing surveys in China and the United States helped boost confidence and euro zone PMI data was not as bad as anticipated.

TOP STORIES

* The euro zone economy is on course for its deepest downturn since early 2009, while Chinese factories returned to growth last month bringing better news for the world economy, business surveys showed.

* European Union negotiators believe they are close to securing British and German backing for a deal on nearly a trillion euros of spending over the next seven years, but last minute concessions may be needed to secure French and Polish support.

* Spain will start tapping markets for money to cover its 2013 financing needs, a burden that many investors think will eventually force it to seek aid from its euro zone partners.

* Forget that Turkey trot. Thanksgiving is now the start of the annual U.S. holiday shopping endurance race, as more stores open on Thursday's national holiday to seek a bigger share of spending that is expected to grow slowly this season.

* Falling home prices and an uptick in household income made Canadian home ownership slightly more affordable in the third quarter, but the longer-term trend is largely unchanged, according to a report by RBC Economics released.

MARKET SNAPSHOT

* Canada stock futures traded up 0.22 percent

* U.S. stock futures , , were up around 0.23 percent to 0.32 percent

* European shares, were up

COMMODITY PRICE MOVES

* Thomson Reuters-Jefferies CRB Index : 298.01; rose 0.37 percent

* Gold futures : $1,727.9; were unchanged

* US crude : $87.28; fell 0.11 percent

* Brent crude : $110.58; fell 0.25 percent

* LME 3-month copper : $7,733.5; rose 0.54 percent

CANADIAN STOCKS TO WATCH

* Brookfield Asset Management Inc. : The company said it would merge its real estate, facilities and project management services with the Australian and New Zealand business of auto parts supplier Johnson Controls Inc to form a single entity.

ANALYST RECOMMENDATIONS

Following is a summary of research actions on Canadian companies reported by Reuters.

* Bonavista Energy Corp. : Canaccord Genuity cuts price target to C$20 from C$20.50 on valuation, says Blueberry Montney risked upside potential from valuation as the asset should attract only modest capital over the near term

* Gildan Activewear Inc. : RBC raises price target to $37 from $30 on increased confidence in the company's performance in the next year

* Just Energy Group Inc. : TD Securities cuts target price to C$13 from C$14.50 citing the company's near-term funding shortfall and growth expenditures

* Research In Motion Ltd. : National Bank Financial ups price target of its U.S. listed shares to $15 from $12 on higher expected shipments ahead of the February BB10 launch

* Shaw Communications Inc. : TD Securities raises target price to C$25 from C$24 after the company reported better-than-expected fourth-quarter results

ON THE CALENDAR

* Major Canadian economic data includes retail sales

* No major U.S. economic data scheduled for release

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