TSX could open down as swine flu rattles sentiment

TORONTO (Reuters) - Toronto's main stock index could open lower on Monday after a 7-week rally given concerns about a possible global swine flu outbreak.

The resource-heavy index may get hit hardest by its energy shares as the price of oil dropped partly on concerns that the world economy could struggle to get out of a recession if a swine flu outbreak in Mexico turns out to be the start of a global pandemic.

Shares of energy companies make up about 22 percent of the overall index and often lead the TSX up or down.

The S&P/TSX composite index .GSPTSE is coming off a session where it rallied to its highest level in more than five months and scored its seventh straight week of gains.

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

WORLD FLU EPIDEMIC FEAR RISES, MEXICANS TAKE REFUGE

Fears of a global swine flu pandemic grew with new infections in the United States and Canada on Sunday, and millions of Mexicans stayed indoors to avoid a virus that has killed 103 people.

OIL FALLS BELOW $50, FLU PANDEMIC MAY HURT ECONOMY

Oil prices fell more than 4 percent to below $50 a barrel on Monday, pressured partly by expectations the world economy could suffer another blow if a flu outbreak in Mexico turns out to be the start of a pandemic.

GOLD HITS 4-WEEK HIGH AS FLU FEARS SPOOK MARKETS

Gold steadied in Europe on Monday after rising to a four-week high earlier in the session as equities fell on concerns over the prospect of a global flu pandemic, which boosted interest in bullion as a haven.

JEAN COUTU LOSS WIDENS ON RITE AID

Jean Coutu Group (PJCa.TO) reported a wider quarterly loss on Monday as it absorbed losses from its stake in U.S. pharmacy Rite Aid Corp (RAD.N).

GERMAN FOREIGN MIN HAS "POSITIVE" VIEW OF MAGNA

Germany's Foreign Minister has gained a "positive impression" of Austrian-Canadian auto parts supplier Magna (MGa.TO) after holding talks with the potential investor in General Motors Corp's GM.N unit Opel, his ministry said on Monday.

(Reporting by Frank Pingue; Editing by Theodore d'Afflisio)