CORRECTED - CANADA STOCKS-TSX to open higher on resources, stimulus optimism

Wed Dec 10, 2008 11:05am EST
 
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(Corrects 10th paragraph to show MDS Inc MDS.TO lowered its outlook, not lowered its outlook for the second time this quarter)

TORONTO Dec 10 (Reuters) - Toronto's main stock index could open higher on Wednesday on firmer commodity prices and optimism over a possible bailout of the U.S. auto industry, as well as global stimulus measures to fight a deepening economic crisis.

On Tuesday, the S&P/TSX composite index .GSPTSE closed down 169.56 points, or 1.98 percent, at 8,397.56, pulled lower by financials after a big equity offering by Royal Bank of Canada (RY.TO: Quote), while the Bank of Canada's declaration the economy is in a recession weighed on sentiment.

Here is some of the news that may affect the market:

NORTEL NETWORKS NT.TO NT.N

Nortel Networks Corp has sought legal advice to study a bankruptcy protection scenario in the event that its restructuring plan fails and has also been exploring potential assistance from the Canadian government, the Wall Street Journal reported. [ID:nBNG281373]

MINING STOCKS

The resource-laden materials sector could be in focus after global miner Rio Tinto (RIO.AX: Quote) said it would cut 14,000 jobs, slash capital spending by more than half and sell more assets as it battles a collapse in commodity prices. [ID:nSP365347]

GREAT-WEST LIFECO (GWO.TO: Quote)   Continued...