News of the apparent collapse of Saddam Hussein’s government failed to boost equity markets Wednesday as investors look ahead to what could be a rocky earnings season. The S&P/TSX composite index closed down 24.20 points to 6,414.51.

The International Monetary Fund’s latest forecast for 2003 released Wednesday warned that a strong economic recovery is unlikely. It cut its world growth forecast by 0.5% to 3.2% for this year.

The TSX gold sector jumped almost 3%, as the bullion price rose US$3.40 to US$325.60. Glamis gained $1.17 to $15.64, while Kinross was up 42¢ to $8.76.

The volatile information technology sector fell 2.18%, ] Celestica, which fell 74¢to $14.95. Nortel Networks slid 16¢to $3.28.

Air Canada rose 13¢ to $1.47, surprising observers who say the shares could be made virtually worthless during the airline’s restructuring.

In earnings news, Shaw Communications fell $1.01, or to $16.00 after it reported a smaller second-quarter loss as higher prices and strong Internet subscriber growth boosted sales by almost 10%.

Toronto volume was heavy at 271.6 million shares worth $1.92 billion. Market momentum was positive, as 575 issues advanced, while 484 declined.

The TSX Venture Exchange moved up 5.45 points to 1,047.13.

In New York, the major indices and averages closed lower. The Nasdaq Composite Index dropped 26.20 points to 1,356.74, while the Dow Jones industrial average tumbled 100.98 points to 8,197.94. The S&P 500 was off 12.30 points at 865.99.

The Canadian dollar gained 0.04 of a cent to US68.17¢.