CANADA STOCKS-TSX could get lift from oil, but Nortel to sink
(Adds details, Nortel bankruptcy filing)
TORONTO Jan 14 (Reuters) - Toronto's key stock index could open higher on Wednesday as a rise in oil prices support the resource heavy index, but telecommunications equipment maker Nortel Networks may steal the spotlight after news that it filed 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 is often the case, the energy group has gone the way of oil prices in recent sessions, which means the rise in oil prices on Tuesday helped steer the broader index from its third straight selloff.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE is coming off a sharply higher close on Tuesday as investors raced back into equities after a string of selloffs had left the TSX at its lowest level in two weeks.
Here is some of the news that may affect the market:
NORTEL FILES FOR BANKRUPTCY PROTECTION IN U.S.
Nortel Networks Corp NT.TONT.N, North America's biggest maker of telephone equipment, filed for bankruptcy protection on Wednesday, a day before it was due to make an interest payment of about $107 million. [ID:N14442895]
Nortel shares plunged more than 76 percent to 7.5 cents in electronic pre-market trading. Continued...