TSX stumbles on weak bank, energy shares

Mon Jun 4, 2012 4:42pm EDT
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By Jennifer Kwan

TORONTO (Reuters) - Stocks stumbled on Monday as investor fears about a slowing global economic outlook weighed on financial and energy issues, pushing the benchmark index to its lowest intraday level in nearly eight months.

Extending June's weak start, the Toronto main stock index touched 11,209.55, its weakest level since October 5, on broader worries about the financial stability of the euro zone, as well as economic weakness in United States and China.

The latest North American data to fan fears about slowing global growth was a government report on orders for U.S. factory goods, which fell in April for the third time in four.

The data added to Friday's gloom after a Labor Department report showed U.S. job creation slowed in May for the fourth straight month. An industry report said the pace of growth in manufacturing slowed modestly in May.

"There are definitely concerns of more of a unified slowdown," said Rick Meslin, head of Canadian equities at UBS.

"What were individual concerns now seem to be playing out into a more global phenomenon with China slowing, the United States slowing and maybe the recovery is stalling."

The index's key financial sector led the way lower, dropping 0.6 percent. Big names on the downside included Toronto-Dominion Bank (TD.TO: Quote), down by 0.5 percent at C$76.50, and Royal Bank of Canada (RY.TO: Quote), which sank 0.8 percent to C$49.57.

Bank of Montreal (BMO.TO: Quote) fell 1.2 percent to C$53.48 and Canadian Imperial Bank of Commerce (CM.TO: Quote) dropped 1.1 percent to C$69.70.   Continued...

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