TSX falls, global growth concerns weigh on materials
By Fergal Smith
TORONTO (Reuters) - Canada's main stock index fell to a fresh five-week low on Tuesday, with broad-based losses paced by the materials group after weak Chinese inflation data added to concern about the outlook for global growth.
"It has a lot to do with the news out of China," said Kevin Headland, director capital markets and strategy at Manulife Asset Management, adding that they expect that to be the story for some time yet as China transitions "towards domestic consumption."
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended down 70.99 points, or 0.53 percent, at 13,411.63, having hit a fresh five-week low at 13,336.90.
Eight of the index's 10 main groups finished lower.
The materials group tumbled 2.1 percent, including a greater than 3 percent loss for Potash Corp (POT.TO: Quote).
"The sector stance on a global growth scare is anti-cyclical, specifically anti-commodity," said Paul Taylor, Chief Investment Officer, Fundamental Equities, BMO Asset Management Inc.
The energy group retreated 0.3 percent despite a bounce in crude oil.
A report by the U.S. IEA said oil was unlikely to return to $80 a barrel before the end of the decade, despite cuts in investment, as annual demand growth struggles to top 1 million barrels per day. Continued...