November 11, 2008 / 2:15 PM / 9 years ago

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

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

World’s top uranium producer Cameco Corp CCO.TO reported a 48 percent jump in third-quarter profit, but said it would look to cut costs and defer projects amid the global credit crunch. Adjusted profit fell. [ID:nN11304417]

URANIUM ONE TO LAY OFF STAFF-UNION

South Africa’s Solidarity trade union said Uranium One UUU.TO plans to lay off 1,013 workers at its closed Dominion mine in the country by January next year. Dominion used to be the company’s flagship mine, producing the commodity used to fuel nuclear reactors but Uranium One has said it would consider selling it. [ID:nLB198961]

RONA PROFIT SLIPS

Rona Inc RON.TO reported a lower third-quarter profit as a slump in construction and renovation bit into results. [ID:nN11306446]

NORBORD TO STRENGTHEN CAPITAL STRUCTURE

Timber products firm Norbord Inc NBD.TO said it would act to strengthen its capital structure, including holding a C$240 million rights offering and suspending its quarterly dividend. [ID:nWEN0311]

RESEARCH ROUNDUP: FIVE BROKERAGES CUT NORTEL

At least five brokerages have cut Nortel Networks Corp NT.TO after the telephone gear maker posted a big quarterly loss and set further cost cuts. BMO raised its target on Fairborne Energy Trust FEL.TO, while Genuity cut it. Goldman Sachs cut LuluLemon Athletica LLL.TO.

For a summary of research actions reported by Reuters, please double-click [RCH/CA] ($1=$1.19 Canadian) (Reporting by Ka Yan Ng; Editing by James Dalgleish)

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