(Reuters) – Canada‘s main stock index looked set to open lower on Monday, hurt by uncertainty prevailing over Spanish bailout and lackluster global corporate earnings.
Trading volumes are expected to be thin with U.S. stock markets closed because of the huge and potentially damaging hurricane expected to hit the U.S. East Coast later in the day.
A spokeswoman for TMX Group Ltd said the Canadian stock markets it operates would remain open.
TOP STORIES
* Progress Energy Resources Corp. : Malaysian state oil firm Petronas will renew a bid for the gas producer, Petronas sources said, seeking to assure the Canadian government that the C$ 5.17 billion deal will benefit the country.
* Hurricane Sandy, a mammoth storm menacing the East Coast, took aim at the most densely populated U.S. region on Monday, forcing hundreds of thousands to seek higher ground, halting public transport and closing schools, businesses and government departments.
* Drugmaker Pfizer Inc and power companies Entergy Corp and NRG Energy Inc said they would postpone releasing quarterly earnings results because of the hurricane approaching the U.S. Northeast.
* TransCanada Corp has formed a joint venture with Phoenix Energy Holdings Ltd to develop a C$ 3 billion pipeline project in Northern Alberta.
* European Union governments will debate a cut of at least 50 billion euros this week as the starting point for negotiations on the bloc’s proposed 1 trillion-euro long-term budget, a source familiar with the issue said.
* Swiss bank UBS AG is expected to cut up to 10,000 jobs, or 16 percent of its workforce, as it contends with shrinking revenue and rising capital requirements, a source familiar with the matter said, in what would be one of the largest layoffs by a bank since the financial crisis.
MARKET SNAPSHOT
* Canada stock futures traded down 0.81 percent
* U.S. stock futures,, were down around 0.68 percent to 0.88 percent <.N>
* European shares <.FTEU3>, <.STOXX> were down <.EU>
COMMODITY PRICE MOVES
* Thomson Reuters-Jefferies CRB Index <.TRJCRBTR>: 296.90; fell 0.12 percent
* Gold futures: $ 1,709; fell 0.11 percent
* US crude: $ 85.55; fell 0.85 percent
* Brent crude: $ 109.28; fell 0.25 percent
* LME 3-month copper: $ 7,703; fell 1.5 percent
CANADIAN STOCKS TO WATCH
* Inmet Mining Corp. : Gold miner Petaquilla Minerals Ltd rejected the company’s revised buyout offer of C$ 130 million and said it continues to explore other strategic alternatives, including discussions with third parties regarding a potential deal. The offer was revised from its from C$ 109 million offer in September.
* Patheon Inc.: The contract drugmaker said it will buy Banner Pharmacaps, a specialty pharmaceutical business, for $ 255 million to expand its oral dosage development and manufacturing services. It also raised it revenue forecast for the year to between $ 740 million and $ 745 million.
* Wescast Industries Inc. : 75 unionized workers at a plant in Strathroy, Ontario, have gone on strike, the Canadian Auto Workers union and the auto parts maker said on Saturday. The company in a brief statement said that it had put plans in place to ensure continued supply of parts to customers.
ANALYST RECOMMENDATIONS
Following is a summary of research actions on Canadian companies reported by Reuters.
* Alamos Gold Inc. : CIBC raises price target to C$ 23 from C$ 21 on the miner’s strong cost control, production growth and increased cash flow for next year.
* DHX Media Ltd. : Canaccord Genuity starts with buy rating and sets target price of C$ 2.15 on the advantages that accrue from the acquisition of Cookie Jar which may result in more tangible growth potential.
* MacDonald Dewttwiler and Associated Ltd. : CIBC raises to sector outperformer from sector performer and raises price target to C$ 66 from C$ 54.50 after the company received anti-trust approval for the acquisition of Space Systems/Loral Inc from Loral Space and Communications Inc.
* Rogers Communications Inc. : National Bank Financial cuts to sector perform from outperform on company’s overstretched valuations following the rally after the second and third-quarter results beat.
ON THE CALENDAR
* No major Canadian economic data scheduled for release
* Major U.S. events and data includes personal income and consumption and core PCE price index
($ 1= $ 1 Canadian)
(Reporting by Chandrashekhar Modi; With additional reporting by Alastair Sharp; Editing by Jeffrey Hodgson)
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