CANADA STOCKS-TSX set to open lower, employment data awaited

Fri Aug 8, 2014 7:25am EDT

Aug 8 (Reuters) - Canadian stocks looked set to open lower on Friday, taking a cue from global markets after U.S. President Barack Obama stoked fears of another drawn out conflict in Iraq by authorizing targeted air strikes against Islamist rebels.

September futures on the S&P TSX index <0#SXF:> were down 0.07 percent at 0715 ET.

Canadian employment data for July is due at 0830 ET. Economists expect the labor market to bounce back from June's unexpected decline, with the unemployment rate holding at 7.1 percent.

The TSX index dropped on Thursday as worries about the escalating crisis in Ukraine fueled declines in most major sectors.

Dow Jones Industrial Average e-mini futures were down 0.23 percent at 0715 ET, while S&P 500 e-mini futures were down 0.24 percent. Nasdaq 100 e-mini futures were down 0.27 percent.

(Morning News Call newsletter link.reuters.com/nex49s; The Day Ahead newsletter link.reuters.com/mex49s)

TOP STORIES

Auto parts maker Magna International Inc reported a higher-than-expected rise in quarterly profit and raised its full-year sales forecast, helped by strong demand in North America and continued recovery in Europe.

TMX Group Ltd, the operator of the Toronto Stock Exchange and the TSX Venture Exchange, said it plans to launch a new business to allow capital raising and the trading of securities of privately owned entities.

Tekmira Pharmaceutical Corp said the U.S. Food and Drug Administration had modified its clinical hold status on Tekmira's experimental Ebola treatment to enable its potential use in humans infected with the virus.

COMMODITIES AT 0715 ET

Gold futures : $1,318.5; +0.59 pct

US crude : $98.06; +0.74 pct

Brent crude : $106.39; +0.9 pct

LME 3-month copper : $6,977.25; -0.31 pct

ANALYST RESEARCH HIGHLIGHTS

Air Canada : Canaccord Genuity raises target price to C$13 from C$12

Newalta, Stantec, others: Canaccord Genuity raises target price

IGM Financial, Avigilon, others: NBF cuts price target

U.S. ECONOMIC DATA DUE ON FRIDAY

0830 Labor costs for Q2: Expected +1.4 pct, prior +5.7 pct

0830 Productivity for Q2: Expected +1.5 pct, prior -3.2 pct

1000 Wholesale inventories mm for June: Expected +0.6 pct, prior +0.5 pct

1000 Wholesale sales mm for June: Expected +0.5pct, prior +0.7 pct

1030 ECRI weekly index: Prior +135.5

1030 ECRI weekly annualized: Prior +4.1 pct

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=$1.09 Canadian) (Reporting by Mononshila Deka in Bangalore; Editing by Ted Kerr)

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