July 25 (Reuters) - Toronto's main stock index looked set to open higher on Wednesday, after European Central Bank (ECB) Governing Council member Ewald Nowotny said there are arguments for giving Europe's permanent rescue fund a banking licence.
* ECB Governing Council member Ewald Nowotny has broken ranks with ECB colleagues, saying that giving Europe's permanent rescue fund a banking licence to increase its capacity had merits.
* Canadian Pacific Railway, fresh from a proxy battle that ousted its chief executive officer and chairman, reported a 20 percent drop in quarterly earnings on Wednesday due to the impact of a strike by its engineers in May and management transition costs.
* Britain's economy shrank far more than expected in the second quarter of 2012, battered by everything from an extra day's holiday to budget austerity and the neighboring euro zone crisis.
* German business sentiment dropped in July to its lowest level in more than two years, adding to signs that Europe's largest economy is losing momentum along with its immunity to fallout from the region's deepening debt crisis.
* Teck Resources Inc, Canada's largest diversified miner, reported a drop in its second-quarter net profit of nearly 65 percent, largely due to lower coal and metal prices.
* Encana Corp reported a second-quarter net loss as it wrote down assets because of declines in natural gas prices.
* Precision Drilling Corp, Canada's largest oil and gas drilling contractor, reported an 11 percent rise in quarterly profit on higher rates but cut its adjusted capital expenditure plan for the year citing lower-than-expected industry activity. ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ To receive an early e-mail of Reuters Morning News Call - Canada -- a preview of market moving news -- Thomson Reuters subscribers can register at ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
* Canada stock futures <0#SXF:> traded up 0.60 percent
* U.S. stock futures <0#SP:>, <0#DJ:>, were up around 0.60 percent
* European shares, were up
COMMODITY PRICE MOVES
* Thomson Reuters-Jefferies CRB Index : 296.39; rose 0.01 percent
* Gold futures : $1,583.3; rose 0.46 percent
* U.S. crude : $88.59; rose 0.1 percent
* Brent crude : $103.38; fell 0.04 percent
* LME 3-month copper : $7,441; rose 0.32 percent
CANADIAN STOCKS TO WATCH
* Ecopetrol : The oil company's consolidated net profit fell 2.5 percent in the second quarter from a year earlier to 3.65 trillion pesos, the company said on Tuesday, lower than analyst expectations.
* Suncor Energy Inc : The oil producer and refiner posted a second-quarter operating profit that beat analyst expectations, helped by increased production and higher refinery margins.
* Bell Aliant Inc : The telecom services provider posted a lower quarterly profit on higher costs.
* Centamin Plc : The gold miner said it had halted operations at its flagship Sukari gold mine for a second time this year due to labour unrest.
* Cenovus Energy Inc. : The independent oil producer's second-quarter profit fell 40 percent on weaker prices for oil and natural gas.
Following is a summary of research actions on Canadian companies reported by Reuters.
* Augusta : Canaccord Genuity ups target to C$5.50 from C$4.80 on positive feasibility study for its proposed Rosemont open-pit copper project, capital and costs in-line with estimates, speculative buy
* Brookfield Canada : CIBC ups target to C$30.50 from C$29 and rates sector performer on rising distribution, steady internal growth and strong core markets
* Ridgeline Energy : National Bank Financial cuts to sector perform from outperform on fourth-quarter results below expectations and slowing market for water segment
* Rogers Communications : RBC lifts price target to C$43 from C$42 better-than-expected second quarter operating results, Canaccord raises target to C$39 from C$37
* Thomson Reuters : Citigroup assumes coverage with a buy rating, says the stock offers an attractive risk/reward profile and signs of positive momentum in the financial and risk business
ON THE CALENDAR
* Major U.S. events and data includes new home sales for June and the weekly Mortgage Market Index
($1= $1.01 Canadian) (Reporting by Kishan Nair; Editing by Jeffrey Hodgson)