Source: The Canadian Press

The Toronto stock market headed for more losses at the open Tuesday a day after another round of pessimism over global economic prospects sent the TSX tumbling to its lowest level since July 2010.

Investors have been concerned over the last couple of months about the slowing pace of economic revival, and the effects of a Greek default are fuelling worries of another recession.

Those fears have translated into deep price slides for oil and metals and pushed the resource-heavy TSX into bear market territory, generally defined by a drop of at least 20% from recent highs.

The Canadian dollar has also been a casualty of economic worries, despite the still-strong fundamentals of the Canadian economy, reflecting a steep drop in commodity prices and a flight to the perceived safe haven status of U.S. Treasury bonds. The loonie fell 0.3 of a cent to 94.84 cents US, its lowest level since early September 2010.

U.S. futures also indicated further losses on New York markets with the Dow Jones industrial futures down 105 points to 10,424 after the blue chip barometer fell 258 points on Monday. The Nasdaq futures fell 19.5 points to 2,045.8 while the S&P 500 futures dropped 11.1 points to 1,075.2.

Markets tumbled Monday after Greece said it wouldn’t be able to reduce its budget deficits as much as it had agreed to as part of a deal to receive more emergency loans. Fears have been growing that Greece, despite billions of euros in rescue loans, will eventually have to default on its massive debts.

Officials indicated early Tuesday that Greece will get a loan instalment it needs to keep paying its bills, though not as soon as Greece says it needs it.

The stronger U.S. dollar and the prospect of slower economic growth continued to drive oil prices much lower with the November crude contract on the New York Mercantile Exchange down $2.05 to US$75.56 a barrel after falling Monday to its lowest close since Sept. 28, 2010.

A stronger greenback usually helps depress oil prices, which are denominated in dollars, as it makes oil more expensive for holders of other currencies.

Copper prices struggled to stay above the US$3 level with the December contract down eight cents to US$3.07 a pound. Copper is widely viewed as a barometer for the health of the overall global economy since it is used in the manufacturing of electronics, homes and infrastructure.

Gold prices headed lower with the December bullion contract on the Nymex down $9.40 to US$1,648.30 an ounce.

In Asia, Japan’s Nikkei 225 fell 1.1%, South Korea’s Kospi plunged 3.6%, Hong Kong’s Hang Seng sank 3.4% while Australia’s S&P/ASX 200 shed 0.6%.

Markets in mainland China were closed for a holiday.

European markets all tumbled more than three per cent with London’s FTSE 100 index falling 3.32%, Frankfurt’s DAX lost 3.76% while the Paris CAC 40 dropped 3.334%.

In corporate news, pharmacy network Jean Coutu Group Inc. (TSX:PJC.A) said profits increased nearly 53% to $66.4 million in the second quarter as it booked a gain from selling part of its stake in U.S. pharmacy chain Rite-Aid.

Revenues increased to $635.2 million from $625.6 million.

Ford Motor Co. (NYSE:F) and the United Auto Workers have come to terms on a new four-year contract that trades annual pay raises for profit sharing and a signing bonus and promises thousands of new jobs. Details weren’t released, but the deal is expected to be superior to the contract approved by factory employees at General Motors Co. last week.

Nickel producer Liberty Mines Inc. (TSX:LBE) says it plans to restart production at its ore mill and tailings pond facility near Timmins, Ont., in the first quarter of 2012. The operations have been suspended since February.