Nov 12 (Reuters)- Toronto's main stock index looked set to open lower on Friday after commodity prices tumbled on fears of another Chinese rate hike and the ability of some euro zone countries to service their debts. FACTORS TO WATCH * Canadian equity futures pointed to a lower open. * U.S. stocks index futures fell on expectations China would raise interest rates, hitting commodity prices and sending the local stock market into a tailspin. * European stocks dropped in early trade, losing ground for the third straight session, hurt by escalating fears over Ireland's debt problems that also dragged the euro to a six-week low versus the dollar. * Asian stocks were down, led by a 5 percent drop in the Shanghai composite index, the biggest single-day decline since May. COMMODITY PRICE MOVES * The Thomson Reuters-Jefferies CRB index, a global commodities benchmark, fell 1.45 percent in early trade. * Oil fell more than 2 percent to below $86 a barrel, retreating from a 25-month high reached in the previous session, as concern about Irish debt spurred a broad retreat from riskier assets. * Gold was lower as worries over some euro zone countries' ability to service their debts battered stocks and commodities, but the metal recovered from lows as the dollar surrendered early gains versus the euro. * Base metals tumbled on the London Metal Exchange, as talk of an interest rate rise by China and renewed fears of over a European sovereign debt crisis encouraged hot money to flee risky assets. CANADIAN STOCKS TO WATCH * Pacific Rubiales and Petrominerales: Ecopetrol had chosen seven partners led by Canadian oil companies, including both oil firms to work on a $4.2 billion project to build an oil pipeline, Colombia's state oil company said on Thursday. * Enerplus Resources Fund: The oil and gas trust posted a third-quarter profit that beat market estimates helped by favorable commodity prices, and said it is on track to meet its annual production view. * Franco-Nevada Corp.: The gold-focused royalty company reported on Thursday third-quarter results that topped market estimates, helped by a 35 percent boost in royalty revenue from its gold and precious metal assets in North America and Mexico. * Linamar Corp.: The maker of auto parts and other precision machined components reported on Thursday a quarterly profit that trailed estimates, partly hurt by a decline in demand in the agricultural equipment markets, and said its CFO had resigned. * Algonquin Power and Utilities Corp.: The company reported on Thursday a lower third-quarter profit, mainly hurt by weakness in its renewable energy division. * Migao Corp: The specialty fertilizer maker reported on Friday lower quarterly results, hurt by increased selling, general and administrative costs, and a higher effective tax rate, but said revenue will pick up in the third quarter. * Cardiome Pharma Corp.: The drug company reported on Thursday significantly stronger third-quarter profit, largely due to a $30 million milestone payment and lower expenses. * GLG Life Tech Corp: The life sciences company reported on Friday higher third-quarter results, helped by an increase in sales for its Stevia product. * Asia Bio-Chem Group: The cornstarch producer reported on Thursday third-quarter profit which more than doubled, partly helped by improvement in pricing and the addition of its Daquing plant in China. * Miranda Technologies Inc: The provider of technology for the television broadcast industry posted a six-fold jump in third-quarter profit on Friday, helped by new products and an improvement in broadcast markets. * Transition Therapeutics: The pharmaceutical company reported on Thursday a lower first-quarter loss, as research and development costs dropped more than 20 percent. ANALYST RECOMMENDATIONS Following is a summary of research actions on Canadian companies reported by Reuters. * ZCL Composites price target cuts to C$3 from C$3.50; rating sector perform at National Bank ($1= $1.00 Canadian) (Reporting by Bangalore Newsroom; Editing by Jeffrey Hodgson) Keywords: MARKETS CANADA/STOCKS (firstname.lastname@example.org; 416 941 8099; Reuters Messaging: email@example.com)) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved.
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