August 21, 2012 / 12:26 PM / 7 years ago

CANADA STOCKS-TSX may open higher on optimism over euro zone

Aug 21 (Reuters) - Canada’s main stock index looked set to open higher as markets remain optimistic that strategy being drawn up by the European Central Bank would help tackle the region’s debt crisis.


* China’s leading offshore oil producer CNOOC Ltd said its first-half net profit fell by almost a fifth - twice as much as the market had expected - and it cut its dividend by 40 percent to make room for its $15.1 billion acquisition of Canadian oil firm Nexen Inc.

* Glencore’s $30 billion bid for miner Xstrata is not a “must-do deal” its chief executive said, in the company’s strongest suggestion yet that it will not yield to key shareholder Qatar’s demands for an improved offer.

* Spain’s short-term borrowing costs dropped at auction as investors bet the European Central Bank will intervene on bond markets, but a lack of detail over when and how it will act meant yields remained punishingly high.

* Britain’s government finances veered further off track in July after a shortfall in corporation tax revenues and higher spending led to an unexpected deficit in a month that normally has strong tax receipts.

* Japan’s Elpida Memory, which failed earlier this year, said it had submitted a restructuring plan to the Tokyo District Court, as expected following its agreement to be bought by U.S. chipmaker Micron Technology Inc.


* Canada stock futures traded up 0.2 percent

* U.S. stock futures , , were up around 0.2 to 0.3 percent

* European shares, were up


* Thomson Reuters-Jefferies CRB Index : 306.25; rose 0.49 percent

* Gold futures : $1,624.9; rose 0.3 percent

* US crude : $96.68; rose 0.74 percent

* Brent crude : $114.49; rose 0.69 percent

* LME 3-month copper : $7,546.5; rose 1.21 percent


* Heritage Oil : The company will sell part of a gas block and borrow money from Genel Energy Plc to raise $450 million, easing concerns about how it will fund oilfield purchases in Nigeria.


Following is a summary of research actions on Canadian companies reported by Reuters.

* Encana : SogGen cuts to sell from hold

* Enerplus : CIBC ups target to C$15 from C$14.50 after the company sold 8 percent stake in Laricina for C$141 million

* Franco-Nevada : RBC cuts to sector perform from outperform, says the agreement on Inmet’s Cobre Panama project is unlikely to give near-term cash flows

* Pershimco Resources : NBF starts with sectorperform and a price target C$1.00 to reflect the junior gold developer stage of the company which may take time to catch up with valuation

* Pure Energy Services : Canaccord Genuity cuts to hold from buy, says the company’s share price of C$10.93 after acquisition by FMC Technologies, results in limited upside to the C$11.00 target price


* Major Canadian economic data includes wholesale trade

* Major U.S. events and data includes Redbook chain store sales

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