TSX tumbles on soft jobs data, global growth fears

Fri Jul 6, 2012 11:21am EDT
 
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By Jon Cook

TORONTO (Reuters) - Toronto's main stock index fell sharply early on Friday, led by financial and resource shares, in the wake of underwhelming jobs data in Canada and the United States and after the head of the International Monetary Fund expressed concern about the global economy.

U.S. employers likely quickened the pace of hiring last month but not enough to allay worries that Europe's debt crisis is shifting the economy into low gear.

In Canada, job growth slowed in June for a second straight month in a reality check after outsized employment gains earlier this year, firming the market's view that the Bank of Canada won't act soon on recent hints of a rate hike.

"They're not robust numbers," said Fred Ketchen, director of equity trading at ScotiaMcLeod.

"Economic activity in the U.S. is going nowhere fast. If we're depending upon an uptick there in order to spur us on, chances are it isn't going to come, at least in the short-term."

All of Canada's 10 main sectors fell. Losses were led by the heavyweight financials group, which dropped 1.1 percent.

Top lenders Royal Bank of Canada (RY.TO: Quote) dipped 1.5 percent to C$52.74, Toronto-Dominion Bank (TD.TO: Quote) sank 0.9 percent to C$79.21 and Bank of Nova Scotia (BNS.TO: Quote) was down 1.1 percent at C$53.29.

Around 11 a.m. (1500 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 126.74 points, or 1.1 percent, at 11,690.29.   Continued...