CANADA STOCKS-TSX may open lower on Spanish and Italian concerns

Mon Feb 4, 2013 8:25am EST

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Feb 4 (Reuters) - Canada's main stock index looked set to open lower on Monday, dragged down by a drop in commodity prices, after political uncertainty in Spain and Italy dampened investor mood.

TOP STORIES

* Spain's opposition Socialist Party called for the resignation of Prime Minister Mariano Rajoy over a corruption scandal on Sunday as a poll showed the lowest support on record for his centre-right People's Party.

* In Italy former prime minister Silvio Berlusconi, one of the top candidates in this month's general election, is seeing a resurgence in popularity which threatens the reforms implemented by the outgoing technocrat government.

* Euro zone factory prices fell for the second month in a row in December, mirroring the trend in consumer inflation and leaving room for a possible European Central Bank interest rate cut to revive the weak economy.

* The number of people out of work in Spain rose by 2.7 percent in January from a month earlier, meaning 4.98 million people are unemployed in the euro zone's fourth-biggest economy, data from the Labour Ministry showed.

* Commerzbank, Germany's No. 2 bank, posted a larger-than-expected quarterly loss after a cut in its medium-term profit forecasts had a damaging effect on its tax accounting.

MARKET SNAPSHOT

* Canada stock futures traded down 0.34 percent

* U.S. stock futures , , were down around 0.25 percent

* European shares, were down

COMMODITY PRICE MOVES

* Thomson Reuters-Jefferies CRB Index : 304.3896; fell 0.38 percent

* Gold futures : $1,664; fell 0.32 percent

* US crude : $96.8; fell 0.99 percent

* Brent crude : $115.97; fell 0.68 percent

* LME 3-month copper : $8,285.75; fell 0.05 percent

ANALYST RECOMMENDATIONS

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

* Precious Metals: Barclays cuts price target of the U.S.-listed shares of Barrick Gold Corp to $45 from $48, of Goldcorp Inc to $49 from $53 and Newmont Mining Corp to $60 from $65, says higher gold prices will negatively affect reserve and resource grades that have been steadily declining and expects production and capex to be flat.

* Cogeco Cable Corp : RBC raises to outperform from sector perform and raises price target to C$47 from C$42 to reflect the company's acquisition of Peer 1 Networks Enterprises Inc and its revised 2013 outlook.

* Twin Butte Energy Ltd : CIBC cuts price target to C$3 from C$3.15 after the company cut its 2013 capital expenditure and production outlook due to operational and reservoir issues at its Primate project and a cautious view on differentials.

ON THE CALENDAR

* No major Canadian economic data scheduled for release

* Major U.S. events and data includes ISM New York index and factory orders data

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