CANADA STOCKS-Toronto index set to fall, economic gloom returns

Tue Nov 11, 2008 9:13am EST
 
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TORONTO Nov 11 (Reuters) - The Toronto Stock Exchange's main index is poised to slip at the open on Tuesday as a rally in commodity issues faded and investor sentiment returned to gloom over the economic environment.

The S&P/TSX composite index .GSPTSE closed up nearly 1 percent on Monday, buoyed by commodity-related issues after China unveiled a plan to pump $586 billion into its economy. But this euphoria connected to the China plan was short lived.

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

FUEL PRICES HIT ACE AVIATION, UBS COMMENTS ON AIRLINES

ACE Aviation Holdings ACEa.TO, the parent company of Air Canada ACa.TO, reported a quarterly loss, hurt mainly by high fuel prices. ACE is exploring options for its stake in Air Canada. For more see [ID:nN10481115].

UBS cut Air Canada, saying the airline's tightening liquidity is of particular concern given moderating demand. Air Canada has lost 33 percent since it reported results last week and liquidity concerns arose. UBS said WestJet Airline WJA.TO should emerge from the downturn with a greater market share. [ID:nWNAB1642]

OIL FALLS BELOW $60, METALS UNDER PRESSURE

Oil prices dropped below $60 a barrel as a firmer U.S. dollar and renewed gloom over the global economy wiped out Monday's boost from China's stimulus plan. The firm U.S. dollar also put pressure on metals. [ID:nLB342361]

CAMECO NET RISES, MAY CUT COSTS   Continued...