CANADA STOCKS-TSX may open lower after China rate hike

April 5 (Reuters) – Toronto’s resource-heavy main stock
index looked set to open lower on Tuesday after China raised
interest rates for the second time this year, knocking
commodity prices lower.

FACTORS TO WATCH

* Canadian equity futures (0#SXF:: Quote, Profile, Research) pointed to a lower
open.

* China’s central bank increased interest rates on Tuesday
for the fourth time since October, raising suspicions that data
next week may show inflation rose more than expected in March.
[ID:nL3E7F51LX]

* U.S. stock index futures fell after a slide in Apple Inc,
which had its weighting cut in a rebalancing of shares in the
Nasdaq 100, forcing some to sell the iPhone maker’s stock.
[.N]

* European shares traded flat in choppy trade with
inflation concerns intensifying as crude prices hovered around
2-year highs, prompting investors to pause for breath following
a three-week rally. [.EU]

* Asian shares were down as investors worried rising
commodities prices could erode corporate profit margins.

CANADIAN STOCKS TO WATCH

* TMX Group Inc. (X.TO: Quote, Profile, Research): The owner of the Toronto Stock
Exchange will put forward a formal submission to Canadian
regulators in the “coming weeks” regarding its proposed
takeover by London Stock Exchange, TMX CEO Tom Kloet said on
Monday. [ID:nN04266784]

* Equinox (EQN.TO: Quote, Profile, Research): The company extended its $4.8 billion
bid for Lundin Mining (LUN.TO: Quote, Profile, Research) and postponed a vote on the deal
by two weeks on Tuesday, awaiting a formal $6.5 billion
takeover offer from China’s Minmetals Resources.
[ID:nSGE73400P]

* Kinross Gold Corp. (K.TO: Quote, Profile, Research): The gold miner said it signed
an agreement to buy the stake it does not already own in
Chukotka Mining and Geological Co for about $350 million,
giving it full ownership of the Russian mining company.
[ID:nL3E7F42ZS]

ANALYST RECOMMENDATIONS

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

* Cineplex Inc (CGX.TO: Quote, Profile, Research) rating raised to outperform from
sector perform at National Bank

* Thomson Reuters Corp (TRI.TO: Quote, Profile, Research) price target cut to C$45
from C$47; rating outperform at National Bank

COMMODITY PRICE MOVES

* The Thomson Reuters-Jefferies CRB index (.CRB: Quote, Profile, Research), a global
commodities benchmark, fell 0.41 percent in early trade.

* Oil prices fell but held near 2-year highs, with Brent
remaining close to $121 a barrel on unrest in oil exporting
countries in the Middle East and Africa. U.S. oil (CLc1: Quote, Profile, Research) is
expected to fall to $106.41, as it faces a strong resistance at
$109.11. A Fibonacci projection of the current wave 3 target
reveals the 61.8 percent at $109.11 per barrel, which has
forced oil to retrace. [O/R]

* Gold prices eased after China raised interest rates for
the second time this year, though euro zone debt concerns and
elevated oil prices linked to violence in the Middle East
region limited losses in the metal. Spot gold (XAU=: Quote, Profile, Research) needs to
clear a resistance at $1,440 before running towards $1,467 per
ounce or higher. The chart has developed to a such a pivotal
point that a rise above $1,440 would open the way towards
$1,476, while a drop below $1,430 may force gold to fall back
to $1,415. [GOL/]

* Copper fell on demand concerns, as top metals consumer
China raised interest rates and inventories rose in Asia, while
strong oil prices fanned worries inflation could hamper global
growth. LME copper (MCU3=LX: Quote, Profile, Research) is technically neutral as it is
trapped within the $9,264 to $9,500 range. A rise above $9,500
per tonne would confirm an inverted head-and-shoulders pattern,
with a target to be established at $9,700, while a fall below
$9,300 will extend to $9,150. [MET/L]

($1= $0.96 Canadian)
(Reporting by Rahul Karunakar; editing by Jeffrey Hodgson)

CANADA STOCKS-TSX may open lower after China rate hike