(Reuters) - Canadian stocks looked set to open lower on Friday after rallying more than 2 percent on Thursday, as the investor optimism that followed Europe's latest debt crisis plan began to fade.

Riskier assets came under slight pressure, with yields hitting a euro era high at the Italian 10-year bond sale, which was the first euro zone bond auction since European leaders agreed their anti-crisis measures.

FACTORS TO WATCH

* Canadian equity futures pointed to a lower open.

* U.S. stock index futures fell as investors took profits a day after a rally that pushed the S&P to close above its 200-day moving average for the first time since August. .N

* European shares edged lower, giving up a small part of the previous session's strong gains, with Italian stocks lower after weak demand at a bond auction, serving as a reminder that the euro zone debt crisis is far from over. .EU

* Asian shares rallied in strong volumes.

COMMODITY PRICE MOVES

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, fell 0.54 percent in early trade.

* Brent crude oil fell more than $1 per barrel to $111 as investors took another look at the details of a financial rescue plan for the euro zone, which has helped boost oil prices this week.

* Gold eased but was still on course for its biggest weekly rise in two months after the euro zone's last-minute deal on containing debt crisis buoyed commodities and equities in the previous session.

* Copper slipped after a sharp rise in the previous session, but optimism surrounding Europe's initiatives to tackle the region's debt crisis and expansion in the U.S. economy kept the red metal firmly on track for its biggest weekly gain in nearly three years.

CANADIAN STOCKS TO WATCH

* Research In Motion (RIM.TO: Quote): The BlackBerry maker has set up a facility in Mumbai to help the Indian government carry out lawful surveillance of its BlackBerry services, the WSJ said, citing people familiar with the matter.

* Canadian Oil Sands Ltd. (COS.TO: Quote): Third-quarter profit at the oil sands producer rose 25 percent on higher oil prices and increased production.

* Fairfax Financial Holdings (FFH.TO: Quote): The company said on Thursday its quarterly profit rose more than 150 percent as the insurer booked a $1.6 billion gain on investments.

* RioCan Real Estate Investment Trust (REI_u.TO: Quote): The REIT said it would raise C$100 million in a discounted equity offering to repay its debt.

* Pembina Pipeline Corp. (PPL.TO: Quote): The company said it will build a natural gas liquid extraction, transportation and storage facility for about C$200 million in west central Alberta.

* Inmet Mining IMN.TO: The base metal miner said on Thursday its third-quarter profit rose about 10 percent, helped by an increase in production for its copper, zinc and pyrite.

* Canfor Corp. (CFP.TO: Quote): The forest products company posted a narrower-than-expected third-quarter loss and forecast slower lumber consumption in North America in the fourth quarter.

* ATS Automation Tooling Systems Inc. (ATA.TO: Quote): The company said its French solar manufacturing unit will cut its production capacity by two-thirds, after it failed to secure a buyer for the plant.

* Mosaid Technologies (MSD.TO: Quote): The patent licensing company said late on Thursday that it agreed to be bought for an all-cash offer of C$46 per share by U.S.-based private equity firm Sterling Partners for C$590 million, which trumped a hostile bid from rival Wi-Lan Inc (WIN.TO:Quote) for C$532 million.

* Norbord Inc. (NBD.TO: Quote): The wood panels maker posted a smaller third-quarter loss as panel prices held up in Europe despite the economic uncertainty.

ANALYST RECOMMENDATIONS

Following is a summary of research actions on Canadian companies reported by Reuters.

* Altagas Ltd (ALA.TO: Quote) price target raised to C$28.50 from C$27.50 at National bank

* Cogeco Inc (CGO.TO: Quote) rating cut to sector underperformer from sector performer; price target cut to C$47 from C$45 at

* Lundin Mining Corp (LUN.TO: Quote) price target cut to C$8.00 from C$8.50 at CIBC

* Nexen Inc. (NXY.TO: Quote) price target cut to C$25 from C$27 at CIBC

($1= $0.99 Canadian)

(Reporting by Rahul Karunakar; Editing by Jeffrey Hodgson)

Gold Copper Manufacturing Crude oil