(RTTNews) - Canadian stocks will look to get back on the winning track Tuesday morning after a series of brutal sell-offs left Toronto’s main index at its lowest closing mark in more than three years on Monday.

Indiscriminate selling drove the S&P/TSX Composite Index lower by 572.92 points at 10,230.43, its worst closing level since July 2005. The main index fell was down by over 1,000 points in early dealing, but was able to recoup half of its losses as traders did some hunting for beaten down shares.

Tuesday’s outlook is somewhat brighter as US stocks futures turned slightly higher and European stocks stabilized after the Reserve Bank of Australia slashed its key interest rate by a full percentage point, raising hopes that other central banks around the world will follow suit.

Resource stocks have suffered historic losses of late as commodity prices plunged due to concerns about demand for oil and base metals. Meanwhile, financials hit the skids as the credit crisis spread throughout the world, fueling talk of a global recession.

Energy stocks may see some buying interest as the price of crude jumped back above $91 a barrel after dropping toward $87 on Monday. On Monday, the Energy Index plunged more than 9 percent to its lowest since 2005.

Banks may stay under pressure amid some troubling news from across the Atlantic, where reports surfaced indicating that Royal Bank of Scotland, Lloyds TSB and Barclays asked the UK finance minister for public funds.

Barclays Chief Executive John Varley denied the report, saying that the company “has not requested capital from the government and has no reason to do so.”

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Posted in Categories: Australia, Canada, Eurozone, Releases, Stocks, UK, USA.

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