CANADA STOCKS-TSX to open lower as US auto bailout in focus

Fri Dec 12, 2008 8:59am EST
 
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TORONTO Dec 12 (Reuters) - Toronto's main stock market index could open lower on Friday as the market focuses on the collapse of the U.S. auto bailout package and falling commodity prices weigh on the resource-heavy index.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed down 242.10 points, or 2.8 percent, at 8,391.90, on Thursday with all 10 of its subindexes lower.

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

The U.S. Senate failed on Thursday night to reach a last-ditch compromise to bail out automakers, effectively killing any chance of congressional action this year. [ID:nLC578768]

Oil fell below $45 a barrel on Friday, after the collapse of a $14 billion rescue for U.S. automakers caused heavy losses across global financial markets and Goldman Sachs predicted oil could fall to $30 a barrel. [ID:nT92693]

BCE Inc BCE.TO said on Friday, one day after the collapse of a C$34.8 billion buyout that would have taken it private, it was reinstating its common share dividend and it announced a new share buyback. [ID:nWNAB2268]

The Canadian government is open to helping the auto sector, Finance Minister Jim Flaherty said on Friday, speaking after the collapse of a proposed deal in the U.S. Senate to aid the auto industry there. [ID:nOTT001476]

Canada Finance Minister Jim Flaherty refused to criticize the country's banks on Friday for failing to pass on the full central bank rate cut to their customers. [ID:nTOD003926]

The committee overseeing a planned restructuring of C$32 billion ($26.2 billion) of at-risk short-term Canadian debt has made last-minute changes aimed at preventing the collapse of the package. [ID:nN12433824]

IMAX Corp IMX.TO firmed up its management team and said it would begin the search for a chief operating officer as it advances its business strategy. [ID:nN12432239]

Patheon Inc PTI.TO returned to a fourth-quarter profit on Friday helped by improved performances at its key divisions and a one-time gain. [ID:nN12437223] ($1=$1.24 Canadian) (Reporting by Scott Anderson; Editing by Tom Hals)