TSX To Open Higher On Tim Hortons-BK Merger, ECB Chatter - Canadian Commentary

(RTTNews) - Canadian stocks are likely to open higher Monday, lifted by news that Burger King Worldwide Inc. is set to acquire Tim Hortons.

Positive European markets amid hopes of fresh stimulus from the European Central Bank is also likely to aid sentiment.

Investors, while watching for news from Ukraine and the Middle East, will also look out for corporate news for some direction.

Gold and energy stocks are likely to turn in a mixed performance, tracking sluggish commodity prices.

On Friday, the S&P/TSX Composite Index ended down 20.54 points or 0.13 percent at 15,535.55. However, for the week, the index gained about 1.5 percent.

In corporate news, restaurant chain Tim Hortons Inc. (THI.TO) and Burger King Worldwide Inc. (BKW) confirmed that they are in discussions to create a global leader in the quick service restaurant business. The new publicly-listed company would be headquartered in Canada.

Valeant Pharmaceuticals International Inc. (VRX.TO) will be in focus after Pershing Square Capital LP said Friday it submitted written requests from 31 percent of Allergan Inc (AGN) stockholders that the botox maker call for a special meeting to discuss a rejig of the Allergan board as well as the unsolicited acquisition offer from Valeant.

Cardinal Energy Ltd. (CJ.TO) said its previously announced Wainwright Acquisition has closed effective August 22. The deal will allow Cardinal to expand its drilling program while maintaining a less than 15 percent corporate decline rate.

Polaris Minerals Corp. (PLS.TO) announced that it has appointed Scott Dryden as Vice President of Business Development.

In commodities, crude oil futures for October are up marginally at $ 93.70 a barrel.

Natural gas for October is up $0.062 or 1.61 percent at $3.946 per million btu.

Gold futures for December are down $1.10 or 0.09 percent at $1,279.10 an ounce.

Silver for December is up $0.014 or 0.07 percent at $19.473 an ounce. Meanwhile, copper is up $0.015 or 0.46 percent at 3.238 per pound.

European markets are currently trading higher amid hopes of the ECB will roll out more monetary stimulus to counter deflationary risks.

Speaking at the Jacksone Hole Symposium last Friday, European Central Bank President Mario Draghi said the ECB is willing to inject considerably more cash into the system if needed to keep low rates of inflation from taking hold.

In the symposium, the U.S. Federal Reserve Chair Janet Yellen gave little hint about monetary policy outlook.