Canada’s main stock index looked set to open higher on Monday, tracking European and U.S markets, as investors looked ahead to a gathering of central bankers later this week for clues on what officials might agree to support a sagging global economy.
- The U.S. Federal Reserve should launch a fresh round of monetary stimulus immediately, buying bonds for as long as it takes to produce a steady decline in the jobless rate, a top Fed official said.
- German business sentiment dropped for a fourth month in a row in August to reach its lowest since March 2010, driven down by increasing worries about the outlook for exports.
- Angela Merkel tried to calm a growing storm over eurozone crisis strategy on Sunday after the Bundesbank likened ECB bond-buying plans to a dangerous drug and a conservative ally of the German leader said Greece should leave the currency bloc by next year.
- Samsung Electronics 005930.KS shares slumped 7.5 % on Monday, wiping more than $12 billion off the South Korean giant’s market value, as a sweeping victory for Apple Inc AAPL.O in a U.S. patent lawsuit raised concerns about its smartphone business.
- Canadian gold explorer Inter-Citic Minerals Inc ICI.TO said Western Mining Group Co Ltd has agreed to acquire it for $250 million in cash to expand its gold mining business.
- Spain’s economy contracted by more than previously estimated in 2010, and grew by less than first published in 2011, according to revised data from the National Statistics Institute released on Monday.
- Canada stock futures traded up 0.38%
- U.S. stock futures were up 0.1% to 0.5%
COMMODITY PRICE MOVES
- Thomson Reuters-Jefferies CRB Index rose 0.71%
- Gold futures GCc1: $1,667.7; fell 0.13 %
- US crude CLc1: $96.95; rose 0.83%
- Brent crude LCOc1: $114.14; rose 0.48%
- LME 3-month copper CMCU3: $7,640; fell 0.28%
CANADIAN STOCKS TO WATCH
- Cameco Corp. CCO.TO: BHP Billiton has agreed to sell a uranium deposit at Yeelirrie, Australia to Cameco Corp for $430 million, as the top global miner sheds assets to help improve returns and shore up cash in a deteriorating commodity market.
Following is a summary of research actions on Canadian companies reported by Reuters.
- Coastal Energy CEN.TO: CIBC ups target to $22.50 from $21.50 to reflect the mid-year reserve update, Malaysia risked service contracts and an expanded 2012 capital program
- Detour Gold DGC.TO: CIBC cuts price target to $42 from $45 citing the higher operating cost environment and mining of lower grade ore from the Calcite zone
- Rio Novo Gold RN.TO: Canaccord Genuity cuts to hold from speculative buy and cuts target to $0.25 from $0.90 on uncertainty regarding the economics of the Almas project amid significantly higher capital costs
- RMP Energy Inc. RMP.TO: NBF resumes coverage with outperform and sets price target of $3, says business strategy remains focused on the Montney oil trend at Waskahigan and Ante Creek that drives confidence
- Yamana Gold YRI.TO: CIBC resumes coverage with sector performer rating and sets a price target of its U.S.-listed shares to $23 following the close of acquisition of Extorre, and its Cerro Moro project
© Thomson Reuters 2012