CANADA STOCKS-TSX falls 1 pct to lowest since October

Mon Jun 4, 2012 11:31am EDT
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* TSX touches low of 11,245.47 points
    * All of index's 10 subsectors retreat

    By Jennifer Kwan	
    TORONTO, June 4 (Reuters) - Canadian stocks sank to a near
eight-month low on Monday as investor fears about a slowing
global economic outlook weighed on commodity-linked issues and
kept the benchmark index under pressure.	
    Extending June's weak start, the Toronto main stock index
followed overseas markets lower and at one point dropped 1
percent to touch 11,245.47, its lowest since Oct. 5, on
persistent 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 months as
demand slipped for items such as cars, machinery and computers.
    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.	
    "It's follow-on of weaker U.S. numbers," said Rick Meslin,
head of Canadian equities at UBS.	
    "There are definitely concerns of more of a unified
slowdown. 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," said Meslin.	
    The index's key sectors of energy, materials and financials
were lower. Big names on the downside included Barrick Gold
, which sank 1.5 percent to C$42.99, as the price of
gold eased. Suncor Energy was down 1.1 percent at
C$27.17 as oil prices remained relatively soft. 	
    Also lower was Toronto-Dominion Bank, down by 0.9
percent at C$76.23, and Royal Bank of Canada, down 1.4
percent at C$49.30.	
    At around 11:20 a.m. (1520 GMT), the Toronto Stock
Exchange's S&P/TSX composite index was off 90.34
points, or 0.8 percent, at 11,270.86, extending last week's 1.9
percent loss.	
    The uncertain worldwide growth outlook generally flushed
more investors out of riskier assets on Monday, sending world
shares and commodities down despite signs that a drive by
Europe's leaders to tackle the region's debt crisis was
gathering momentum. 	
    The euro climbed and bonds eased off last week's record low
yields as speculation mounted that authorities will manage to
keep the euro zone intact and ameliorate the region's festering
debt crisis. 	
    Investors are waiting for the outcome of policy meetings by
the European Central Bank this week, as some investors
positioned for an outside chance of a rate cut. Factory prices
held steady in the euro zone in April, giving the ECB some room
to cut rates. 	
    In individual company news, Canada's biggest
telecommunications company, BCE Inc was up 0.2 percent
at C$40.95. It said over the weekend it has joined with a group
of private equity fund managers to buy data center company Q9
Networks Inc for C$1.1 billion.