July 14-TSX may open higher, buoyed by U.S. earnings

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CANADA STOCKS-TSX may open higher, buoyed by U.S. earnings

July 14 (Reuters) - Toronto’s main stock index looked set to open higher on Thursday, taking its cue from its U.S. counterpart, as stronger results from JPMorgan Chase improved investor sentiment towards the financial sector.

FACTORS TO WATCH

* Canadian equity futures pointed to a higher open.

* S&P 500 stock index futures briefly edged higher after JPMorgan Chase reported earnings, but concerns over sovereign debt issues in Europe and U.S. budget talks meant gains were short lived. [.N]

* European shares fell after Moody’s warned the United States may lose its top credit rating if politicians fail to agree an increase in the borrowing limit, and after Italian bond yields soared following an auction. [.EU]

COMMODITY PRICE MOVES

* The Thomson Reuters-Jefferies CRB index , a global commodities benchmark, fell 0.15 percent in early trade.

* U.S. crude turned positive as the dollar weakened further, while ICE Brent slipped ahead of its expiry and on concerns over further global economic slowdown.

* Gold prices hit record highs for a second day after hints of further policy easing from the Federal Reserve and a Moody’s warning the United States may lose its top-notch credit rating hurt the dollar and sparked buying of safe-haven assets.

* Copper rose on the London Metal Exchange, benefiting from prospects of improving global economic growth in the second half while supply stays constrained, although a flight from risk in broader markets capped its advance.

CANADIAN STOCKS TO WATCH

* Nexen Inc. : The independent oil explorer’s second-quarter profit rose 3 percent helped by higher oil prices.

* Corus Entertainment : The media company reported a 39 percent rise in third-quarter profit, driven mainly by television advertising revenue and subscriber fees, and it also raised its annual dividend by 16 percent.

* Opti Canada : The company, which filed for creditor protection on Wednesday said it did not expect to reach gross production rates over 50,000 barrels per day from its Long Lake oil sands project on weak oil sands output.

* Talison Lithium : The miner expects production to be constrained at its Greenbushes mine in Western Australia till the completion of the second stage of expansion at the mine, which is expected in the fourth quarter of 2012.

* TMX Group : The operator of the Toronto Stock Exchange is now in talks with a Canadian consortium whose hostile bid for the group scuppered a friendly combination with the London Stock Exchange, a government official said on Wednesday.