CANADA STOCKS-TSX may open higher on commodity price gains

July 21 (BestGrowthStock) – Toronto’s main stock index could open
higher on Wednesday after commodity prices rose on optimism
about the strength of the economic recovery and solid U.S.
company earnings that boosted investor sentiment.

Canadian equity futures (0#SXF:: ) pointed to a stronger
start as the Thomson Reuters-Jefferies CRB index (.CRB: ), a
global commodities benchmark, rose 0.68 percent in early
trade.

Wall Street is also poised to open higher boosted by upbeat
earnings from Apple (AAPL.O: ) that reported after markets closed
on Tuesday. [.N]

European stocks rose in a broad rally, climbing for the
first time in a week, with investors scooping up recently
battered banking shares on hopes the sector’s stress test
results will be reassuring.

Major Asian markets were up on optimism that China may roll
back policy tightening measures later this year, but Nikkei
bucked the trend weighed down by worries about a stronger yen.

Here is some news that could affect stock prices:

OIL UP

Oil rose above $78 a barrel on Wednesday after Tuesday’s
strong U.S. corporate earnings raised optimism over the
strength of economic recovery in the world’s largest economy.
[O/R]

COPPER AT 3-WEEK HIGH

Copper rose to a three-week high on Wednesday as strong
physical and Chinese buying coupled with falling inventories
boosted prices, but gains were capped by the uncertain outlook
for economic growth. [MET/L]

GOLD RISES

Gold firmed in Europe on Wednesday after a weak Portuguese
debt auction raised concerns over the fragility of the euro
zone banking sector, knocking the euro, but gains were limited
by softer investment demand. [GOL/]

C$ SURGES

The Canadian dollar surged against the greenback for the
second straight day on Wednesday, pushed higher by rallying
global stocks and oil prices after healthy earnings from Apple
Inc (AAPL.O: ) whetted investor appetite for riskier assets and
currencies. [CAD/]

Canadian stocks to watch include:

ENCANA CORP (ECA.TO: )

Canada’s biggest natural gas producer Encana Corp (ECA.TO: )
on Wednesday reported a quarterly loss, hurt partly by
commodity hedging, but raised its 2010 production forecast.
[ID:nSGE66K0ES]

IMAX CORP (IMX.TO: )

Giant-screen movie operator IMAX Corp (IMX.TO: ) said on
Wednesday it signed a deal with China’s Guangzhou Jinyi Film &
Television Group Co to open eight IMAX theatres in the country.
[ID:nSGE66K0H7]

KHAN RESOURCES INC (KRI.TO: )

Canada’s Khan Resources Inc (KRI.TO: ) is bracing for a long
legal battle with Mongolian authorities to win final approval
to develop one of the mineral-rich country’s biggest uranium
deposits, its CEO said in an interview on Tuesday.
[ID:nSGE66J0J7]

AASTRA TECHNOLOGIES LTD (AAH.TO: )

Aastra Technologies Ltd (AAH.TO: ) posted a 4 percent drop in
quarterly earnings on Tuesday in part as revenue earned
offshore was reduced by a stronger Canadian dollar.
[ID:nN20100017]

RESEARCH ROUNDUP

Following is a summary of research actions on Canadian
companies reported by Reuters. [RCH/CA]

* Canfor (CFP.TO: ) price target cut to C$10.50 from C$11.50;
rating market perform at Raymond James

* Domtar (UFS.TO: ) price target cut to C$85 from C$100;
rating strong buy at Raymond James

* Fibrek (FBK.TO: ) price target cut to C$1.05 from C$1.25;
rating market perform at Raymond James

* International Forest Products (IFPa.TO: ) price target cut
to C$6 from C$7; rating outperform at Raymond James

* Norbord (NBD.TO: ) price target cut to C$17.50 from C$20;
rating outperform at Raymond James

* West Fraser (WFT.TO: ) price target cut to C$44 from C$48;
rating market perform at Raymond James

Stock Market Analysis

($1=$1.04 Canadian)
(Reporting by Bangalore newsroom, editing by Bhaswati
Mukhopadhyay and Jeffrey Hodgson)

CANADA STOCKS-TSX may open higher on commodity price gains