CANADA STOCKS-TSX may open slightly lower, RIM to weigh

Fri Dec 21, 2012 8:26am EST

Dec 21 (Reuters) - Toronto stock index futures pointed to a slightly lower open on Friday after a proposal from Republican leader John Boehner failed to gain enough support from his party members, deepening uncertainty over the chances of a U.S. budget deal by year-end.

TOP STORIES

* Research In Motion shares tumbled more than 10 percent on Thursday after the company reported the first ever decline in its subscriber numbers and outlined plans to transform the way it charges for its BlackBerry services.

* Republican lawmakers delivered a stinging rebuke to their leader, House of Representatives Speaker John Boehner, on Thursday when they failed to back an effort designed to extract concessions from President Barack Obama in year-end "fiscal cliff" talks.

* Canadian inflation likely remained tame in November as gasoline prices fell and economic growth remained sluggish, keeping pressure off the Bank of Canada to resume raising interest rates.

* The main unit of media and telecom company Cogeco Inc , said it would buy PEER 1 Network Enterprises Inc for about C$526 million to expand its cloud computing and data hosting services.

* German consumer morale dropped for the fourth month running to its lowest level in more than a year as shoppers become increasingly wary of the effect the euro zone debt crisis is having on Europe's largest economy.

* Siemens AG said it plans to cut almost 1,100 jobs in Germany as the engineering giant trims costs to make its energy operations more profitable.

MARKET SNAPSHOT

* Canada stock futures traded lower

* U.S. stock futures , , were down around 1.25 percent

* European shares, were down

COMMODITY PRICE MOVES

* Thomson Reuters-Jefferies CRB Index : 294.1663; fell 0.26 percent

* Gold futures : $1646.6; rose 0.1 percent

* US crude : $88.93; fell 1.33 percent

* Brent crude : $109.42; fell 0.71 percent

* LME 3-month copper : $7798; rose 0.36 percent

CANADIAN STOCKS TO WATCH

* Air Canada : Lufthansa, United Airlines and Air Canada have offered to make slots available to competitors on the Frankfurt to New York route to try to resolve an EU anti-trust enquiry into their transatlantic cooperation deal.

* Oando Energy Resources Inc. : The oil giant ConocoPhillips will sell its Nigerian businesses to the company for about $1.79 billion, the companies said on Thursday.

* Teck Resources Ltd : The diversified miner said it expects first quarter coal production will be unscathed by damage to a berth at key shipping point Westshore Terminals.

ANALYST RECOMMENDATIONS

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

* Brigus Gold : BMO starts with market perform rating and sets a price target of C$1.15, says the company is an emerging gold producer that provides investors production growth of about 56 percent over the next three years

* Capstone Mining : Canaccord Genuity cuts target price to C$3.15 from C$3.25 citing the 2013 operating and capital outlook came slightly below Canaccord's expectations

* Petrominerales : CIBC raises to sector performer from sector underperformer after the company entered into an agreement to acquire a 75 percent interest in a company focused on developing a large oil resource in Brazil

* RIM : National Bank Financial cuts to underperform from sector perform and cuts target price of its U.S. listed shares to $10 from $15 after the management disclosed that monthly services revenue will undergo a change to a tiered menu

* Rio Alto Mining : BMO starts with market perform rating and sets a price target of C$5.50, says the company is an emerging gold-copper producer that provides investors production growth of about 15 percent between 2012-2014

ON THE CALENDAR

* Major Canadian economic data includes consumer price inflation and GDP

* Major U.S. events and data includes personal income, consumption, spending, durable goods, Chicago Fed index, Reuters/UMich business sentiment, current conditions and expectations

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.