CANADA STOCKS-TSX could get lift from oil prices, Nortel eyed

Wed Jan 14, 2009 8:07am EST
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

TORONTO Jan 14 (Reuters) - Toronto's key stock index could open higher on Wednesday as a rally in oil prices support the resource-heavy index, but telecommunications equipment maker Nortel Networks will be in the spotlight as reports suggest it could file for bankruptcy protection.

Toronto's energy sector accounts for about 22 percent of the overall index, and its moves are often influenced by the price of oil, which is a key Canadian export.

As the key energy group has gone the way of oil prices in recent sessions, the rise in oil prices on Tuesday helped steer the broader index from its third straight selloff in the previous session.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE is coming off a sharply higher close on Tuesday when investors raced back into equities after a string of selloffs left the TSX at its lowest level in two weeks.

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

NORTEL MULLING BANKRUPTCY PROTECTION-REPORT

Nortel Networks Corp NT.TO could file for bankruptcy protection on Wednesday as the telecommunications equipment maker faces a large interest payment, a Canadian newspaper said. [ID:N14442869]

OIL RISES TOWARDS $39 ON SAUDI CUTS, US COLD SNAP

Oil rose 3 percent towards $39 a barrel on Wednesday, as OPEC kept up talk of production cuts and a cold snap in the United States boosted heating oil demand. [ID:nLE636936]   Continued...