CANADA STOCKS-TSX may open lower, emerging market sell-off weighs

Fri Jan 24, 2014 8:20am EST

Jan 24 (Reuters) - Canada's main stock index looked set to open lower on Friday as emerging market currencies fell on a sell-off accelerated by worries surrounding China and U.S. monetary policy.

TOP STORIES

* Japanese government calculations indicate that Prime Minister Shinzo Abe cannot meet his budget-balancing promise in coming years on the current course, suggesting he may come under greater pressure from fiscal hawks for future tax increases.

* Procter & Gamble Co, the world's largest household products maker, reported lower quarterly profit, hurt by unfavorable currency movements and lower gross profit margin.

* Business software maker Open Text Corp's second-quarter results beat analysts' estimates, driven by higher license sales and customer service revenue.

* Bristol-Myers Squibb Co's quarterly sales and earnings beat Wall Street expectations, helped by cost cuts and growing sales of its treatments for cancer, blood clots and diabetes.

* Microsoft Corp posted a bigger-than-expected quarterly profit on Thursday, boosted by strong sales of its software and services for businesses, a solid holiday season for its new Xbox game console and Surface tablets, and a slightly lower tax bill.

MARKET SNAPSHOT

* Canada stock futures traded down 0.5 percent

* U.S. stock futures , , were down around 0.54 percent to 0.71 percent

* European shares, were down

COMMODITY PRICE MOVES

* Thomson Reuters-Jefferies CRB Index : 281.943; rose 0.02 percent

* Gold futures : $1,269.3; rose 0.53 percent

* US crude : $96.99; fell 0.34 percent

* Brent crude : $106.71; fell 0.81 percent

* LME 3-month copper : $7,222; rose 0.22 percent

CANADIAN STOCKS TO WATCH

* Enbridge Inc : CEO Al Monaco said on Thursday that an amendment to the U.S. presidential permit for its Alberta Clipper pipeline, which the company needs to expand the line's capacity, will likely be delayed past a previous target of mid-2014.

ANALYSTS' RECOMMENDATIONS

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

* Avigilon : CIBC raises target price to C$50 from C$32, says introduction of a partner loyalty program will lead to 2014 sales beating consensus

* Barrick Gold Corp : RBC raises target price to $23 from $20 says the company's shares should re-rate higher and return to their valuation range prior to the discount created by Pascua-Lama capital escalation and a weak balance sheet

* OpenText Corp : CIBC raises target price to $110 from $95 based on the company's quarterly results beating estimates and its acquisition of GXS

* Semafo Inc : CIBC raises target price to C$4.25 from C$3 citing the company's continues to deliver steady operational results and its ability to advance development/production of new deposits at Mana

ON THE CALENDAR

* Major Canadian economic data includes inflation

* No major U.S. events and data scheduled for release

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