Euro zone, oil drop, push TSX to 5th straight fall

Wed Sep 26, 2012 5:13pm EDT
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By Alastair Sharp

TORONTO (Reuters) - Canada's main stock index fell for a fifth straight session on Wednesday with energy shares leading the retreat as oil prices dropped and investors fretted about renewed tension in the euro zone.

The resource-laden Toronto index has now given up all the gains it made after the U.S. Federal Reserve unveiled a major stimulus program earlier this month that buttressed a similar move from the European Central Bank.

"Emotions are driving reactions in the marketplace," said Brian Pow, a research and equity analyst at Acumen Capital Partners in Calgary.

Oil producer Canadian Natural Resources Ltd (CNQ.TO: Quote) closed 1.3 percent lower at C$30.53, and Suncor Energy Inc (SU.TO: Quote), Canada's No. 1 integrated oil producer and refiner, was down 0.7 percent at C$32.01.

Crude prices also wiped away the gains they made after the Fed and ECB stimulus measures, falling more than 1 percent before paring some of those losses. <O/R>

Rising popular opposition in Greece and Spain to measures aimed at resolving the euro zone's debt crisis unnerved investors already worried about weak global economic growth.

"It'll probably take some pretty drastic adjustments over in Europe to stop the bouncing around," Pow said.

Market anxiety mounted after Greek police fired teargas at youths hurling petrol bombs and stones as tens of thousands took to the streets in Athens in Greece's biggest anti-austerity demonstration in months.   Continued...

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