Citigroup analyst Daniel Hynes looked at the impact the Japanese earthquake and tsunami is likely to have on commodities.

Hynes reckons conventional thermal fuels like oil, gas and coal will get stronger due to the short term changes in Japan’s energy mix. Specifically Japan’s thermal coal demand could jump 10 percent which would pressure already high coal prices.

In the short term the analyst believes there will be a negative impact on base metals prices but that will be ‘more than reversed’ in the long term as reconstruction work will fuel growing demand for steel and other raw materials.

Looking at the uranium market Hynes said that demand will only be slightly hit by the shut-down of 11 megawatt nuclear power generation capacity in Japan through the short term. However he said that any significant public backlash against nuclear power may have negative consequences for new nuclear generating capacity that is under construction or planned – 225 gigawatts.

Elsewhere, in the stock market JP Morgan Cazenove analyst James Gordon said that Shire (LON:SHP) has the highest approval probability in the bank’s ‘coverage universe’, as seven out of nine pipeline projects have already been approved in the US or the EU. He gave the major drug stock an ‘overweight’ rating with a £21.30 target price.

C&W Communications (LON:CWC) is a ‘buy’ according to Deutsche Bank analyst Paul Reynolds. “The deal to acquire the Bahamas Telecommunications Company (BTC) is accretive,” Reynolds said. “We estimate small cash accretion in year 1, rising to $20m in year 2 and $30m in year 3. Our Group pre-exceptionals EPS moves 7-8% higher in 2011/12 and beyond.” Deutsche Bank upped its price target by 3 pence to 74 pence a share.

Credit Suisse analyst Kim Fustier said BP (LON:BP) is ‘best placed’ to benefit from higher oil prices and strong US Mid-Continent refining margins. The analyst gives the stock an ‘outperform’ rating with a 585 pence target price. “We think BP’s earnings could surprise to upside in the first quarter of 2011 and after, while the stock has underperformed in the year to date,” Fustier said.

Richard Rose, oil analyst at Oriel Securities, Falkland Oil & Gas (LON:FOGL) talks are being held with neighbouring explorer Borders & Southern (LON:BORS) – who have already signed up the Eirik Raude rig to start work on its licences during the summer. Once a rig is in place, FOGL and BHP will initially focus on the Loligo prospect.

“The shares have been weak recently in-line with a soft market for AIM E&P stocks and not helped by a lack of confirmation of firm rig slots following Borders’ rig announcement in November last year,” Rose said in a note to clients. “However, the pullback represents a clear buying opportunity in our view and we highlight that the upside from Loligo alone in the event of success is greater than £60.00 pence a share.”

Evolution Securities analyst Richard Griffith said that Cove Energy’s (LON:COV) 8.5 percent stake in the offshore Mozambique gas discoveries is worth between 89 – 150 pence a share (using Anadarko Petroleum’s numbers). “The shares are trading at the bottom end of this range so the exploration upside in the remaining Mozambique acreage, including the oil potential in Ironclad, is therefore in for free,” Griffith said.

Synchronica (LON:SYNC) has become the de-facto provider of next-generation mobile messaging software for emerging markets, according to Northland Securities analyst David Johnson. This morning the AIM-listed firm reported a strong start to the new financial year as annual losses narrowed markedly.

Meanwhile Northland’s Andrew McGeary said that Stellar Diamond’s (LON:STEL) initial bulk sampling from the Bouro kimberlite ‘encourage that there may be a more robust case for further development’. “If Bouro were to prove economic, this would have significant strategic benefit for the group,” he added. “If ultimately successful, Bouro would offer a natural replacement for lower margin Mandala alluvial operations.”

Fairfax Securities analyst John Meyer reckons the permitting for EMED Mining’s (LON:EMED) Rio Tinto copper mine should now move apace after protests at the site put pressure on the local government. “You know that things are a bit wrong in the world when things start to happen the wrong way round. Normally union members stop work in protest but in this case workers are protesting to start work,” Meyer said in a note to clients.

Meyer reckons the mine could potentially re-start production in 2012.

The analyst also looked at Cluff Gold (LON:CLF) after a project update this morning. “Despite the difficulties with the company’s Angovia asset on care and maintenance in Cote d’Ivoire, it is still generating cashflows from Kalsaka which will help to support the exploration at Baomahun which is demonstrating considerable potential,” Meyer said.

Meanwhile of Shanta Gold (LON:SHG) he said: “the (Chunya) resource should see some upgrade and the scale of the mining operation may also be enlarged.”

Peter Rose at Fox-Davies highlighted that while he was excited by Stratex International’s (LON:STI) good annual results statement ‘the true proof of the pudding will lie in the metallurgical test work’ that will be commissioned shortly. This work will assess the recoveries of the oxide copper and gold and help to define the value (or detriment) of the molybdenum and rhenium, Rose added.

The analyst retains a ‘buy’ recommendation on Stratex with a 10 pence a share target.

Lo-Q’s (LON:LOQ) new share-based incentive scheme more closely aligns management’s and shareholders’ interests, and the level of compensation as reasonable, according to Canaccord Genuity analyst Bob Liao. “We believe a strong, incentivised management team is essential to unlocking the high value of Lo-Q’s technology and its strong market position,” the analyst said.