(Reuters) - Canadian stock futures pointed to a higher open on Tuesday on stronger commodity prices and after an inflation report from China, the biggest consumer of resources, came in much lower than expected.
FACTORS TO WATCH
* Canadian equity futures <0#SXF:> pointed to a lower open.
* U.S. stock index futures were little changed as investors remained wary of indexes at loft levels. Retail sales could drive markets. [.N]
* European shares rose, supported by earnings news after results from British bank Barclays (BARC.L) and sales from French food group Danone (DANO.PA) were better than expected. [.EU]
* Asian stocks were mixed, with the Nikkei rising to log a 10-month closing high after lower-than-expected Chinese inflation data helped ease concerns that China will have to tighten monetary policy more aggressively.
COMMODITY PRICE MOVES
* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, rose 0.31 percent in early trade.
* Brent crude oil rose to flirt with $104 a barrel, supported by the Chinese data and as unrest in Bahrain and Iran raised fears of potential disruption to supply. [O/R]
* Gold was set for its largest one-day rise in a week, aided by a weaker dollar and Chinese inflation data. China is the world's second-largest bullion consumer. [GOL/]
* Copper retreated from record highs. [MET/L]
CANADIAN STOCKS TO WATCH
* Canam Group Inc. (CAM.TO): The construction equipment maker posted quarterly results below estimates, hurt by higher cost of sales and a weak nonresidential construction market. [ID:nSGE71E06Y]
* Husky Energy Inc. (HSE.TO): Fourth-quarter earnings slipped, as scheduled maintenance activities slightly reduced its oil and gas output. [ID:nN14113733]
* Vecima Networks (VCM.TO): Vecima, which makes broadband access products used in cable, wireless and telephony networks posted an adjusted quarterly loss, hurt by delays in the launch of new products, and a weak U.S. market. [ID:nL3E7DE20W]
* Canfor Corp. (CFP.TO): The company sees further growth in lumber sales to China, which now takes about 30 percent of the company's production, its executives said. [ID:nN1485409]
* Canadian Natural Resources Ltd. (CNQ.TO): The independent oil explorer expects to resume half the normal production at its fire-damaged Horizon oil sands project in the second-quarter and the rest in the third-quarter. [ID:nN14116476]
* Zenn Motor Co. (ZNN.V): The electric car drive train manufacturer's founder and CEO, Ian Clifford, is stepping down and will assume the role of vice-chairman of the company, effective immediately. [ID:nN14116899]
* Mercer International Inc. MRIu: The company posted a 13-fold surge in quarterly profit, topping market estimates, helped by higher pulp prices. [ID:nL3E7DE23Z]
ANALYST RECOMMENDATIONS
Following is a summary of research actions on Canadian companies reported by Reuters. [RCH/CA]
* Copper Mountain Mining (CUM.TO) price target raised to C$8.60 from C$7; rating market perform at Raymond James
* Ram Power (RPG.TO) price target cut to C$2.20 from C$2.75; rating outperform at Raymond James
* SNC Lavalin Group (SNC.TO) price target raised to C$67 from C$64; rating outperform at Raymond James
* Student Transportation (STB.TO) price target raised to C$7.25 from C$6.25; rating outperform at Raymond James
($1= $0.98 Canadian) (Reporting by Kishan Nair and Bangalore Newsroom; editing by Janet Guttsman)
