CANADA STOCKS-TSX may open higher on cues from global markets

Tue May 27, 2014 7:28am EDT

May 27 (Reuters) - Canadian stocks looked set to open higher on Tuesday, tracking gains in global markets after European Central Bank chief Mario Draghi said the bank was ready to act on deflation.

The European Central Bank must be "particularly watchful" for any negative price spiral in the euro zone, Draghi said on Monday.

June futures on the S&P TSX index <0#SXF:> were up 0.24 percent at 0715 ET.

No economic data is due for release.

The index was little changed on Monday as gains in financials were offset by weakness in Valeant Pharmaceuticals International Inc with investors reluctant to make big moves while the U.S. market was closed for the Memorial Day holiday.

Dow Jones Industrial Average futures were up 0.43 percent at 0715 ET, while S&P 500 futures were up 0.42 percent and Nasdaq 100 futures were up 0.54 percent. (Morning News Call newsletter link.reuters.com/nex49s; The Day Ahead newsletter link.reuters.com/mex49s)

TOP STORIES

Bank of Nova Scotia said its second-quarter profit rose 14 percent, beating estimates, as higher income at its domestic banking and global wealth units offset a flat performance in international retail banking.

Canada is probing two fatal crashes in General Motors Co vehicles which were subject to a recall to fix faulty switches and has received nine further complaints from drivers, the country's top transportation official told Reuters on Monday.

COMMODITIES AT 0715 ET

Gold futures : $1,291.9; +0.02 pct

US crude : $104.11; -0.24 pct

Brent crude : $110.11; -0.19 pct

LME 3-month copper : $6,924.00; -0.06 pct

ANALYST RESEARCH HIGHLIGHTS

Augusta Resource : Canaccord Genuity, National Bank Financial cuts target on stock

Hudbay Minerals Inc : CIBC cuts rating to sector performer from sector outperformer

Transcontinental Inc : RBC cuts rating to sector perform from outperform

U.S. ECONOMIC DATA DUE ON TUESDAY

0830 Durable goods for April: Expected -0.5 pct, prior +2.5 pct

0830 Durables ex-transport for April: Expected +0.0 pct, prior +2.1 pct

0830 Durables ex-defense mm for April: Expected +0.4 pct, prior +1.9 pct

0830 Nondefense ex-air for April: Expected +0.2 pct, prior +2.9 pct

0900 Monthly home price mm for March: Prior +0.6 pct

0900 Monthly home price yy for March: Prior +6.9 pct

0900 Monthly home price index for March: Prior +210

0900 CaseShiller 20 mm sa for March: Expected +0.7 pct, prior +0.8 pct

0900 CaseShiller 20 mm nsa for March: Expected +0.2 pct, prior +0.0 pct

0900 CaseShiller 20 yy for March: Expected +11.8 pct, prior +12.9 pct

0945 Markit services PMI final F for May: Prior +55

0945 Markit comp flash PMI for May: Prior +54.90

1000 Consumer confidence for May: Expected +83.0, prior +82.3

1000 Rich fed comp. index for May: Prior +7

1000 Rich fed, services index for May: Prior +1

1000 Rich fed manuf shipments for May: Prior +6

1030 Dallas Fed Manufacturing Business Index for May: Prior +11.70

FOR CANADIAN MARKETS NEWS, CLICK ON CODES:

TSX market report

Canadian dollar and bonds report

Reuters global stocks poll for Canada

Canadian markets directory

($1= $1.08 Canadian) (Reporting by Mononshila Deka in Bangalore)

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