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