TSX hits near two-week low on Europe fears
By Jon Cook
TORONTO (Reuters) - Toronto's main stock index tumbled to its lowest level in nearly two weeks on Monday as material and financial issues were hurt by weak European data and political tensions that heightened concerns about the region's ability to tackle its debt crisis.
Global stocks and the euro slumped as a Dutch political impasse and disappointing euro zone data revived fears the debt crisis could keep much of Europe mired in recession through the year. <MKTS/GLOB>
"Austerity tends to not work without large political implications as the public will tend to vote out governments that they feel are too austere," said Arthur Salzer, chief executive officer of Northland Wealth Management.
"We can see that in France and Holland in today's news as the public will tend not to tolerate the 'medicine' necessary to shrink debt."
All 10 sectors of the Canadian stock market were down sharply. Heavily-weighted materials led the losses, falling 2.9 percent as prices for key commodities like gold and copper also sold off. <GOL/> <MET/L>
The most influential movers on the downside included Potash Corp POT.TO, which slid 2.7 percent to C$42.43, Teck Resources TCKb.TO, down 3.7 percent at C$35.33, and top gold producers Goldcorp Inc G.TO, down 3.4 percent to C$39.65, and Barrick Gold ABX.TO, which slid 1.7 percent to C$39.39.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE finished down 158.33 points, or 1.3 percent, to 11,988.95, its lowest close in nearly two weeks.
The index hit a session low at 11,919.13, not far from its yearly low of 11,868.97 set on April 10. Continued...