CANADA STOCKS-TSX set to open lower as fears for recovery grow

Aug 20 (BestGrowthStock) – Toronto’s main stock index could open
lower on Friday, tracking global equity markets, as
weaker-than-expected U.S. economic data this week reinforced
fears of a faltering recovery.

FACTORS TO WATCH

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

* A spike in energy costs and a new consumption tax in some
provinces pushed up Canada’s annual inflation rate to 1.8
percent in July from 1.0 percent in June, but still put little
pressure on the central bank to raise interest rates.
[ID:nN20500487]

* The Canadian dollar fell to a one-month low versus the
U.S. dollar on Friday as Canadian inflation data came in below
market expectations and as high-yielding currencies came under
broad selling pressure. [CAD/]

* U.S. stock index futures fell on Friday, tracking global
equity markets lower. [.N]

* European stocks fell with financial and mining shares
among the top losers.

* Asian stocks were also down and the yen threatened to hit
15-year highs as investors sold higher-yielding currencies on
risk aversion

COMMODITY PRICE MOVES

* The Thomson Reuters-Jefferies CRB index (.CRB: ), a global
commodities benchmark, fell 0.54 percent in early trade.

* U.S. crude oil prices hovered below $75 a barrel, near
six-week lows, after weak U.S. economic data this week raised
doubts about the top oil-consuming nation’s ability to work
through the most ample petroleum inventories in two decades.
[O/R]

* Gold held near $1,230 an ounce on Friday as concern over
the outlook for the global economy fuelled interest in the
metal as a haven from risk, but gains in the dollar kept the
metal in a narrow range. [GOL/]

* Copper fell on Friday, on renewed risk-aversion as
investors sought perceived safe-haven assets after data on
Thursday from the United States, the world’s largest economy,
revived worries about the demand outlook. [MET/L]

CANADIAN STOCKS TO WATCH

* Potash Corp (POT.TO: ) (POT.N: ): The world’s largest
fertilizer producer has begun soliciting alternate bids in
light of BHP Billiton’s (BHP.AX: )(BLT.L: ) $38.6 billion hostile
offer to buy the company, a source close to the matter said on
Thursday. [ID:nN1996412]

* Suncor Energy Inc (SU.TO: ): Canada’s largest integrated
oil production and refining company on Friday reported an
outage at one of its hydrogen reformer units at its Alberta oil
sands base plant. [ID:nSGE67J0GU]

* Agrium Inc (AGU.TO: ): The fertilizer maker has completed
due diligence on Australia’s AWB Ltd (AWB.AX: ) after putting in
a bid to buy the wheat exporter for A$1.2 billion ($1.07
billion), AWB said, an offer which trumps a lower all-scrip bid
by local rival GrainCorp (GNC.AX: ). [ID:nSGE67J01B]

* Enbridge Inc (ENB.TO: ): An Enbridge Inc executive said on
Thursday that preparations for pressure testing the company’s
downed oil pipeline in Michigan are expected to continue
through the weekend, pushing any restart of the line into next
week at the earliest. [ID:nN19274468]

* ComWest Enterprise Corp (CWP.V: ): ComWest announced a deal
on Thursday to buy 90 percent of Winnipeg-based Peerless
Garments for C$22.28 million in cash. [ID:nN19273440]

* Alimentation Couche-Tard (ATDb.TO: ): The Canadian
convenience store chain battling to take over Casey’s General
Stores (CASY.O: ) in the United States, urged Casey’s
shareholders on Thursday to back its nominees to Casey’s board
of directors. [ID:nN19251941]

ANALYST RECOMMENDATIONS

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

* BMO (BMO.TO: ) rating started with market perform; target
price of C$64 at KBW

* Fronteer Gold (FRG.TO: ) target price raised to C$8.40 from
C$6.50; rating speculative buy at Canaccord Genuity

* RBC (RY.TO: ) rating started with outperform; target price
of C$60 at KBW

* Southern Pacific Resource (STP.TO: ) target price raised to
C$2.50 from C$2.25; rating strong buy at Raymond James

* TD Bank (TD.TO: ) rating started with market perform;
target price of C$80 at KBW

($1=$1.05 Canadian)
(Reporting by Bangalore newsroom, editing by Bhaswati
Mukhopadhyay and Jeffrey Hodgson)

CANADA STOCKS-TSX set to open lower as fears for recovery grow