CANADA STOCKS-TSX down after gloomy global data, miners drop

Thu Sep 20, 2012 11:04am EDT
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* TSX down 19.82 points, or 0.17 percent, at 12,415.62
    * Mining and industrial stocks weigh
    * Gloomy China, European data highlight global headwinds

    By Alastair Sharp
    TORONTO, Sept 20 (Reuters) - Canada's main stock index fell
on Thursday morning after a string of pessimistic economic data
reminded investors that global recovery is far from assured
despite central bank monetary policy easing.
    In China, manufacturing contracted for an 11th straight
month in September, according to a private sector survey of
factory managers. In the euro zone, a downturn in activity in
the service sector steepened this month at the fastest pace
since July 2009. 
    And in the United States, the number of people filing new
claims for jobless benefits fell last week, but the drop was
from an upwardly revised number the previous weak, and the
underlying tone of the report pointed to some weakening in the
labor market. 
    "The data continues to confirm slow growth or negative
growth, depending on the jurisdictions globally," said Paul
Hand, managing director at RBC Capital Markets. "There was no
positive surprise, which would have been a bigger impetus to
change moods."  
    The Toronto Stock Exchange's S&P/TSX composite index
 followed stock markets around the world lower. At
10:44 a.m. (1444 GMT), it was down 19.82 points, or 0.17
percent, at 12,415.62 by .
    Hand said he was unfazed by the pullback, given the broader
trajectory of the index, which has risen 5.5 percent in the last
three months. 
    "Moods swinging back and forth...we've had pullbacks all the
way along, intra-day or even for a week or two, but the market
has continued to grind higher since June," he said.
    Mining stocks led the fall, while industrial stocks also
weighed as prices for copper and gold retreated. 
    Diversified miner Teck Resources Ltd was down 2.5
percent at C$30.56, while Canadian National Railway Co 
fell 3.3 percent to C$88.62, and Canadian Pacific Railway Ltd
 was off 1.7 percent at C$81.54.
    The drops in the shares of the Canadian railways came after 
 third-largest U.S. railway, Norfolk Southern Corp,
warned on its third-quarter profit after the market close on
    "Norfolk and Southern's warning yesterday was a little
unusual, it has probably cast a pall over some of the
transportation stocks," Hand said.
    Shares in Centerra Gold Inc rose 1.9 percent to
C$12.18 after the miner said it had restarted the mill at its
Kumtor mine in Kyrgyzstan, ending a seven-week shutdown after
the company ran out of stockpiled ore for processing.