Toronto's main stock index was set to open higher on Wednesday, extending gains from the previous session after China unexpectedly cut its bank reserve requirement ratio by 50 basis points, and ahead of Canadian growth data.
Canada's economy likely rebounded solidly in the third quarter to grow at about 3 percent annualized rate, according to a Reuters poll of economists.
FACTORS TO WATCH
* Canadian equity futures pointed to a higher open.
* U.S. stock index futures rose after China unexpectedly cut its banks' reserve requirements in hopes of boosting an economy running at its weakest pace since 2009. .N
* European shares extended a rally into a fourth session, with miners reversing earlier losses after resource-hungry China cut the reserve requirement for banks to ease credit strains and bolster its economy. .EU
COMMODITY PRICE MOVES
* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, rose 0.54 percent in early trade.
* Brent crude oil fell as uncertainty about plans to resolve the euro zone debt crisis weighed on sentiment, and intensified worries about prospects for economic growth.
* Gold rose, reversing earlier losses, as the euro rose against the dollar and equities markets climbed after China surprised with a move to ease credit strains and shore up its economy.
* Copper pared losses as sentiment was boosted by China's move to cut the reserve requirement ratio for its banks by 50 basis points, but intensifying concerns about slowing growth in the euro zone kept a lid on prices.
CANADIAN STOCKS TO WATCH
* Nexen Inc. (NXY.TO: Quote): The company formed a joint venture with China's top offshore oil company CNOOC Ltd in the Gulf of Mexico, a day after the Canadian oil company sold a 40 percent stake in some of its gas assets in British Columbia.
* TMX Group (X.TO: Quote): The company said Canada's commissioner of competition expressed serious concerns about the likely competitive effects of Maple Group's proposed plan to buy the owner of the Toronto Stock Exchange.
* Enbridge Inc. (ENB.TO: Quote): The company's proposed C$5.5 billion pipeline to British Columbia poses a raft of environmental risks, according to a new report that signals the project will become the next battleground over the future of Canada's oil sands.
* Cameco Corp. (CCO.TO: Quote): Finnish miner Talvivaara has secured approval from the European Union to sell uranium, it said on Wednesday, allowing it to press ahead with an offtake agreement with the company, signed earlier this year.
($1= $1.02 Canadian)