CANADA STOCKS-TSX rises on commodities, auto bailout hopes

Wed Dec 10, 2008 10:21am EST
 
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*Mining stocks climb; Rio Tinto to cut 14,000 jobs

*Nortel falls, to explore bankruptcy scenario -report

*Financials sag as Great-West Lifeco issues equity (Adds quote, details)

TORONTO, Dec 10 (Reuters) - Toronto's main stock index rallied at the open on Wednesday on higher oil and metals prices and as optimism over global stimulus measures, including a possible bailout of the U.S. auto industry, helped market sentiment.

The resource-laden materials sector led the way up, climbing 6.6 percent, with Barrick Gold (ABX.TO: Quote) up 8.4 percent at C$38.03, and Goldcorp (G.TO: Quote) up 8.7 percent at C$33.64.

Mining stocks rose even though 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]

Oil and gas stocks rose 2.4 percent as oil climbed above $44 a barrel, after slumping overnight on demand worries ahead of U.S. weekly inventory data. [ID:nSIN422139]

"It's them coming off those deep oversold levels," Peter Chandler, senior vice-president at Canaccord Capital in Waterloo, Ontario, said of the resource sectors.

"It's also a belief that we are, with an increasing likelihood, going to see coordinated infrastructure spending programs announced early in the new year in multiple geographies that will auger well for the demand for a lot of materials."   Continued...