CANADA STOCKS-TSX may open higher on earnings optimism
TORONTO, July 23 (Reuters) - Toronto's main stock market index could open higher on Thursday, as firm metals prices and investors' optimism about this quarter's earning results could lift the resource-heavy index.
World stocks stabilised near the previous session's nine-month high after forecast-beating earnings from major firms boosted expectations for a global economic recovery. [ID:nLN726978]
U.S. stock index futures rose slightly on Thursday as investors remained positive following an overall strong earnings season and ahead of results from United Parcel Service Inc (UPS.N) and McDonald's Corp (MCD.N). [.N]
On Wednesday the S&P/TSX composite index .GSPTSE closed down 82.97 points, or 0.79 percent, at 10,432.35.
Here is some news that could affect the market:
ENCANA CORP (ECA.TO)
EnCana Corp, Canada's largest energy company, said on Thursday its second-quarter operating profit fell 38 percent, as oil and gas prices tumbled due the impact of the recession on energy demand. [ID:nBNG395960]
POTASH CORP OF SASKATCHEWAN INC (POT.TO)
Potash Corp, the world's biggest fertilizer company, posted a 78 percent drop in second-quarter profit hurt by lower sales volumes and cuts its full year profit forecast as buyers continued to be extremely cautious in the wake of the global economic downturn. [ID:nBNG368711]
TECK RESOURCES (TCKb.TO)
Canadian mining giant Teck Resources said on Wednesday its second-quarter operating profit fell from a year ago, as strong earnings from its coal business failed to offset pricing and volume declines in its copper and zinc businesses. [ID:nN22336588]
NORTEL (NRTLQ.PK)
Swedish telecom equipment maker Ericsson said on Thursday it is in the bidding for Nortel's mobile network unit. [ID:nLN56791]
RESEARCH IN MOTION (RIM.TO)
An auction of the wireless assets of bankrupt Nortel Networks (NRTLQ.PK) will go ahead as planned on Friday, despite objections from Research in Motion, which said it was blocked from submitting a $1.1 billion bid for the unit earlier this week. [ID:nN22343944]
HUSKY ENERGY INC (HSE.TO)
Second-quarter profit at Husky Energy Inc (HSE.TO) tumbled 68 percent as oil and gas prices fell and refining returns shrank with the downturn in the economy, the Canadian energy producer said on Wednesday. [ID:nN21258881]
MAGNA (MGa.TO)
General Motors' European business said on Thursday it had agreed to continue detailed talks with both Magna and RHJ International over its German unit Opel. [ID:nLN51941]
OIL EASES
Oil eased slightly but held above $65 a barrel on Thursday, buoyed by European equity markets rising for a ninth straight session and renewed speculation that an economic upturn would boost oil demand. [ID:nSIN419483]
GOLD, BASE METALS
Gold rose to a six-week high in Europe on Thursday as dollar weakness boosted interest in other hard assets, including bullion, before easing below $955 an ounce as the U.S. currency lifted from lows versus the euro. [ID:nLN65574] Base metals were also higher. [ID:nLH683470]
VIA RAIL CANADA
Via Rail Canada, the country's national passenger service, has started to cancel long-distance trains ahead of a possible strike by 340 locomotive engineers on Friday. Airlines Air Canada (ACa.TO) and WestJet Airlines Ltd (WJA.TO) could win extra passengers if there is a rail strike. [ID:nN22316821]
MAGNA ENTERTAINMENT CORP (MECAQ.PK)
Racetrack operator Magna Entertainment Corp fraudulently transferred more than $125 million to companies controlled by Canadian billionaire Frank Stronach before filing for bankruptcy, creditors charged in a court filing. [ID:nN22345434]
CANADA RESEARCH
* Raymond James raises Amerigo Resources (ARG.TO) to outperform from market perform. [ID:nBNG524879]
* RBC raises Shoppers Drug Mart (SC.TO) price target to C$56 from C$54; rating outperform. [ID:nWNAB0851]
* RBC cuts Primary Energy PRI_u.TO price target to C$2 from C$3; rating sector perform. [ID:nWNAB0848]
For more research, please see: [CA-RCH]
($1=$1.10 Canadian) (Reporting by Nina Lex; Editing by Jeffrey Hodgson)
