Source: The Canadian Press

The Toronto stock market was in for a negative start to trading Tuesday as commodity prices backed off amid rising worries about higher interest rates in China and uncertainty over whether Ireland will seek a financial rescue package.

The Canadian dollar moved lower against the American currency, losing 0.43 of a cent to 98.69 cents US.

U.S. futures also pointed to a negative session with the Dow Jones industrial futures falling 73 points to 11,100, the Nasdaq futures were down 15.75 points to 2,112 while the S&P 500 futures lost 5.6 points to 1,190.

Markets have been depressed over the past week on concerns that Chinese monetary authorities will be raising interest rates to cool a property boom and dampen inflationary pressures. Rumours that price controls may also be introduced have added to investors’ concerns.

Worsening sentiment also hit Chinese markets overnight, where the country’s benchmark Shanghai Composite Index fell 4%, adding up to an 8% slide over the past three sessions.

“This hit confidence across much of Asia, so it’s perhaps no real surprise that the sell-off is continuing,” said Anthony Grech, head of research at IG Index.

Investors are also waiting to see if Ireland relents and requests a financial aid package at a meeting of eurozone finance ministers in Brussels.

Although the Irish government has been saying it doesn’t need any money as it’s fully funded until the middle of next year, there’s mounting pressure on Dublin to agree to a rescue deal amid worrying signs that Europe’s debt crisis will create a domino effect.

Portugal is widely considered to be next in the line of fire.

A combination of a stronger U.S. dollar and demand concerns pushed the December crude contract on the New York Mercantile Exchange down $1.10 to US$83.76 a barrel.

Metal prices also backed off with the December copper contract on the Nymex down seven cents to US$3.85 a pound and the December gold contract in New York was down $10.70 to US$1,357.80 an ounce.

Elsewhere in Asia, South Korea’s Kospi closed down 0.8% after the Bank of Korea raised its key interest rate for the second time in four months after inflation burst above 4% in October.

Japan’s Nikkei 225 stock average lost 0.3% while Hong Kong’s Hang Seng slid 1.4%.

European bourses also were lower with London’s’ FTSE 100 index down 1.34%, Frankfurt’s DAX fell 0.7% while the Paris CAC 40 slipped 1.55%.

On the corporate front, General Motors said it is raising the price range for its initial public offering of common stock to US$32 to $33 per share. The new price range is about 14% higher than originally expected. The IPO is expected Thursday.

Shareholders with Australian grain producer AWB Ltd. have voted 80% in favour of a takeover by Canadian fertilizer maker Agrium Inc. (TSX:AGU). An application will be made for court approval on Wednesday, and if approved, the $1.1 billion transaction should be completed by Dec. 3.

Home Depot Inc. said Tuesday a tight lid on expenses helped the largest U.S. home-improvement retailer’s third-quarter net income rise 21% to US$689 million. Revenue increased just 1% as home owners continue to hold back on bigger renovation projects. The company trimmed its revenue guidance for the year but raised its expectations for earnings.

Sears Canada Inc. (TSX:SCC) says its third-quarter revenue and same-store sales fell by 8.2% from a year ago. Total revenue was $1.2 billion, down from $1.3 billion, while net income dropped to $18.5 million from $47.1 million.