TSX resumes losing streak on China, Europe

Fri May 11, 2012 5:00pm EDT
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By Jon Cook

TORONTO (Reuters) - Toronto's main stock index fell for the seventh time in eight sessions on Friday as resource shares slid on a witches' brew of Greek turmoil, slowdown fears in China and shock trading losses at JPMorgan Chase that offset strong North American data.

After a brief period in positive territory on Thursday, Canadian stocks resumed their May sell-off. Seven of the index's 10 main sectors finished in the red, led by the heavyweight materials and energy groups, which both fell more than 1 percent.

"We're getting positive data in North America concurrent with weaker data out of China, which has really been the linchpin to the global growth story," said Craig Fehr, Canadian market strategist at Edward Jones in St. Louis.

Chinese industrial output expanded in April at its slowest annual pace in nearly three years. When paired with poor trade figures from Thursday, the data suggest China's economy continues to slow after a weak first-quarter performance.

Gold miners fell along with the price of gold, which had its biggest weekly decline this year. <GOL/> Barrick Gold (ABX.TO: Quote), the world's largest gold producer, slid 1.9 percent to C$37.09. Canada's second largest gold firm, Goldcorp Inc (G.TO: Quote), dropped 1.5 percent to C$34.90.

Osisko Mining Corp OSK.TO sank nearly 13 percent to C$7.40 after the miner announced on Friday that a fire at its Canadian Malartic gold mine had forced it to shut down operations at its only operating mine.

Oil and gas losses were led by top oil producer Suncor Energy (SU.TO: Quote), which sank 1.9 percent at C$28.75. Talisman Energy TLM.TO was off 3.7 percent at C$10.86 and Encana Corp (ECA.TO: Quote) slipped 2.3 percent to C$21.24.

North American data helped offset some losses. Canada reported a surge in April jobs and U.S. consumer sentiment rose to its highest level in more than four years in early May.   Continued...

A Toronto Stock Exchange (TSX) logo is seen in Toronto November 9, 2007. REUTERS/Mark Blinch