CANADA STOCKS-TSX trims gains, Nortel sags, commodities up

Mon Nov 10, 2008 11:31am EST
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* China stimulus package lifts equities, commodities

* Energy, materials lead index higher

* Nortel cuts 1,300 jobs, posts loss; shares down 13 pct

* Air Canada extends losses, down 12 pct

TORONTO, Nov 10 (Reuters) - The Toronto Stock Exchange's main index was up 1.9 percent on Monday morning in line with other world markets, boosted by the big stimulus package announced by China on the weekend.

Global stock and commodity markets surged in reaction to China's plan to pump nearly $600 billion into its economy as G20 finance ministers pledged on the weekend to take measures to fight global recession and revive financial markets.

"That's put a nice bit in the teeth for commodities and that obviously spills right over into Canada with our large exposure to commodities," said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier.

"That's what the market needs, a sense of global coordination, not only lowering interest rates but also a fiscal plan."

But he cautioned that there are still many headwinds with the ongoing financial crisis and global economic slowdown that could reverse sentiment.   Continued...