December 10, 2008 / 1:55 PM / 9 years ago

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), 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) 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)

Great-West Lifeco Inc says it plans to issues a total of C$1 billion in common shares to the public and to its controlling shareholder, Power Financial Corp (PWF.TO). [ID:nN09284029]

CANADA POLITICS

Canada's opposition Liberals will shift away from the left and name former Harvard professor Michael Ignatieff on Wednesday to lead the party against the Conservative government after the Liberals suffered a crushing defeat at the polls in October. [ID:nN09259636]

TECK COMINCO TCKb.TO

Teck Cominco has consulted with Citigroup Inc (C.N) on a possible sale of minority stakes in core assets, including the Elk Valley Coal business, a company spokesman said on Tuesday. [ID:nN09277979]

AGRIUM (AGU.TO), POTASH (POT.TO)

Agrium Inc said late on Tuesday it has curtailed production and also provided a guidance update. [ID:nWEN1597]

Potash Corp of Saskatchewan will reduce 2009 potash output by 2 million tonnes, or about 20 percent, due to slackening market demand, the company said. [ID:N09282237]

MDS INC MDS.TO MDS.N

MDS Inc lowered its 2008 outlook and said it expected to post a bigger loss than it had previously expected due to a number of writedowns. [ID:nN10310119]

OIL RISES

Oil rose above $44 a barrel, after a slump overnight on demand worries, and ahead of U.S. weekly inventory data that could show crude stocks rising. [ID:nSIN422139]

GOLD, BASE METALS FIRM

Gold edged higher as a weaker U.S. dollar boosted interest in the precious metal as a currency hedge and oil prices were firmer [ID:nLA488759], while base metals were also higher. [ID:nLA452408]

GLOBAL STOCKS

U.S. stock futures rose on Wednesday ahead of a possible vote by the U.S. Congress to provide aid to the U.S. automaker industry. [ID:nN10309293]

Global stocks rose on hopes that governments worldwide will help out ailing industries and inject stimulus measures to fight a deepening economic crisis. [MKTS/GLOB]

CANADIAN RESEARCH

North American newsprint maker AbitibiBowater Inc ABH.N could be hurt by the bankruptcy of Tribune Co, which could further accelerate newsprint demand declines, Dundee Securities says. [ID:nBNG229364] For more research see: [CA-RCH] ($1=$1.26 Canadian) (Reporting by Jennifer Kwan, Editing by Chizu Nomiyama)

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