CANADA STOCKS-TSX may drop as euro zone borrowing costs rise
Jun 14 (Reuters) - Canada's main stock index looked set to open lower on Thursday as a three-notch downgrade on the Spanish debt ahead of Greek elections this weekend and rising Italian and Spanish borrowing costs weighed on sentiment in equity markets.
* Chancellor Angela Merkel rebuffed pressure for Germany, Europe's most powerful economy, to underwrite debt or guarantee bank deposits in the euro zone as Spain's soaring borrowing costs raised new alarm.
* Italy's three-year borrowing costs spiked to 5.3 percent at an auction on Thursday, underlining the mounting pressures on the euro zone's third-largest economy after a Spanish aid deal failed to convince investors the bloc's crisis can be contained.
* Credit ratings agency Moody's Investors Service cut its rating on Spanish government debt on Wednesday by three notches to Baa3 from A3, saying the newly approved euro zone plan to help Spain's banks will increase the country's debt burden.
* Canadian travel operator Transat AT Inc posted a second-quarter loss, hurt by higher fuel costs and lower prices for holiday packages.
* Nokia plans to cut one in five jobs at its global cellphone business as it loses market share to rivals Apple and Samsung and burns through cash, raising new fears over its future.
* Canada stock futures traded down 0.09 percent Continued...