CANADA STOCKS-TSX to open higher on China data, Bank of Canada in focus

July 16 Wed Jul 16, 2014 7:24am EDT

July 16 (Reuters) - Canadian stocks looked set to open higher on Wednesday, tracking gains in global markets after better-than-expected Chinese growth figures boosted investor sentiment.

June futures on the S&P TSX index <0#SXF:> were up 0.37 percent at 0715 ET.

Bank of Canada's rate decision is due at 1000 ET. The central bank is widely expected to hold rates at 1 percent, but investors will look for any reactions to recent stronger-than-expected inflation. May data for manufacturing sales is due at 0830 ET.

The S&P TSX index dropped on Tuesday amid a selloff in shares of energy and gold producers as investors focused on congressional testimony by U.S. Federal Reserve Chair Janet Yellen.

The Fed's comments also pulled down the Canadian dollar on Tuesday against the greenback.

Dow Jones Industrial Average e-mini futures were up 0.33 percent at 0715 ET, while S&P 500 e-mini futures were up 0.34 percent. Nasdaq 100 e-mini futures were up 0.49 percent. (Morning News Call newsletter link.reuters.com/nex49s; The Day Ahead newsletter link.reuters.com/mex49s)

TOP STORIES

Canadian plane and train maker Bombardier Inc reached the 500 mark for deals for its Q400 turboprop model and for its CSeries airliner with three contracts announced at the Farnborough Airshow.

A Canadian regulator said on Tuesday it had delayed a decision on Kinder Morgan Energy Partner's Trans Mountain expansion project by about six months to January 2016, after requesting additional information from the pipeline company on changes to a small portion of the route.

Russia's Severstal has agreed to sell Pennsylvania-based metallurgical coal producer PBS Coals to Canada's Corsa Coal Corp for an enterprise value of $140 million, the Russian company said on Tuesday.

COMMODITIES AT 0715 ET

Gold futures : $1,298.3; +0.09 pct

US crude : $100.89; +0.93 pct

Brent crude : $106.30; +0.26 pct

LME 3-month copper : $7,126.75; -0.05 pct

ANALYST RESEARCH HIGHLIGHTS

Alimentation Couche-Tard : CIBC raises price target to C$35 from C$34; sector performer

Gluskin Sheff : National Bank Financial raises rating to outperform from sector perform

Rogers Communications : Canaccord Genuity raises rating to hold from sell

U.S. ECONOMIC DATA DUE ON WEDNESDAY

0830 PPI final demand mm for June: Expected +0.2 pct, prior -0.2 pct

0830 Core PPI final demand mm for June: Expected +0.2 pct, prior -0.1 pct

0830 PPI final demand yy for June: Expected +1.8 pct, prior +2.0 pct

0830 Core PPI final demand yy for June: Expected +1.7 pct, prior +2.0 pct

0900 Net L-T flows, exswaps for May: Prior -24.2 bln

0900 Foreign buying, T-bonds for May: Prior -13.6 bln

0900 Overall net capital flow for May: Prior +136.8 bln

0900 Net L-T flows, incl. swaps for May: Prior -34.5 bln

0915 Industrial output mm for June: Expected +0.4 pct, prior +0.6 pct

0915 Capacity utilization mm for June: Expected +79.3 pct, prior +79.1 pct

0915 Manufacturing output mm for June: Expected +0.4 pct, prior +0.6 pct

1000 NAHB housing market index for July: Expected +50, prior +49

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; Editing by Kirti Pandey)

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