CANADA STOCKS-TSX may open higher as Chinese leader talks growth

Wed Dec 5, 2012 8:34am EST

Dec 5 (Reuters) - Canada's main stock index looked set to open higher on Wednesday, taking cues from global markets, as remarks from Chinese Communist Party chief Xi Jinping raised hopes for stable growth in the world's second-largest economy.

TOP STORIES

* China will maintain its fine-tuning of economic policies in 2013 to ensure stable economic growth, state television quoted Chinese Communist Party chief Xi Jinping as saying.

* A consortium led by Canadian private equity firm KingSett Capital said it plans to make an offer to acquire Primaris Retail Real Estate Investment Trust in a deal valued at about C$4.4 billion.

* Canadian Pacific Railway Ltd said it would cut 4,500 jobs by 2016 as part of a drive by its new CEO to slash costs and improve its operating efficiency, now the industry's worst.

* A conglomerate controlled by Thailand's richest man, Dhanin Chearavanont, has bought a minority stake in China's Ping An Insurance for $9.38 billion from global bank HSBC, a bold move that ranks as Asia's second-largest deal this year.

* Spain fell short of its targeted amount at a triple bond auction, prompting a rise in yields on the secondary market as investors await the government's move to trigger European Central Bank bond-buying.

MARKET SNAPSHOT

* Canada stock futures traded up 0.50 percent

* U.S. stock futures , , were up around 0.17 percent to 0.34 percent

* European shares, were up

COMMODITY PRICE MOVES

* Thomson Reuters-Jefferies CRB Index : 298.3116; rose 0.22 percent

* Gold futures : $1,706; rose 0.68 percent

* US crude : $88.7; rose 0.23 percent

* Brent crude : $110.19; rose 0.32 percent

* LME 3-month copper : $8,043; rose 0.14 percent

CANADIAN STOCKS TO WATCH

* Rio Verde Minerals Development Corp. : B&A Mineração SA, the mining venture co-founded by former Vale SA CEO Agnelli and investment bank BTG Pactual Group, has offered to buy all of the company, a source with direct knowledge of the situation told Reuters.

ANALYST RECOMMENDATIONS

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

* Allied Properties REIT : RBC raises to outperform from sector perform and raises price target C$36 from C$35 citing the company's strong liquidity, low payout and advancing internal growth opportunities

* Bank of Montreal : Barclays raises price target to C$60 from C$58 and Canaccord Genuity raises target price to C$66 from C$65 after the bank reported strong fourth-quarter results

* Canadian Western Bank : Canaccord Genuity cuts to hold from buy and cuts price target to C$30 from C$32.75 to reflect lower loan growth expectations and unsustainably low provision for credit losses

ON THE CALENDAR

* No major Canadian economic data scheduled for release

* Major U.S. events and data includes ADP national employment, productivity, unit labour costs, factory orders, durable goods and ISM non-manufacturing index

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