CANADA STOCKS-China worries fuel TSX decline as market eyes Fed

Wed Jul 10, 2013 11:12am EDT
 
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* TSX falls 24.57 points, or 0.20 percent, to 12,272.52
    * Eight of 10 main sectors decline
    * BlackBerry slips, drags information technology lower

    By John Tilak
    TORONTO, July 10 (Reuters) - Canada's main stock index
dipped on Wednesday as sluggish economic data from China spurred
declines in most major sectors, while the market awaited the
U.S. Federal Reserve's comments on  its bond buying program.
    Investors closely watched as China, a big consumer of
Canada's commodity exports, warned of a "grim" outlook for trade
after a surprise fall in June exports, raising fresh concerns
about the extent of the slowdown in the world's second-largest
economy. 
    The market will also be looking for clues about the outlook
for U.S. monetary policy by the Fed when it releases minutes
from a June policy meeting at 1800 GMT.
    "We may get some insight into what the Federal Reserve is
thinking," said Fred Ketchen, director of equity trading at
ScotiaMcLeod. "But I don't think there's going to be anything
surprising to come out of the Fed minutes.
    "I don't think we're going to see a definitive decision by
the Fed in giving us a date (to begin its stimulus pullback),"
he added.
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 24.57 points, or 0.20 percent, at 12,272.52.
    Eight of the 10 main sectors on the index were in the red.
    BlackBerry tumbled 5.3 percent to C$9.66 after an
analyst said initial sales of its new mid-tier Q5 device were
weak in the United Kingdom, while sales of its other BlackBerry
10 handsets remained lackluster. 
    The decline comes a day after the smartphone maker faced
tough questions about its future at its annual general meeting.
As a result, the information technology group gave back 1.3
percent, showing the sharpest decline of the major sectors.
    Financials, the index's most heavily weighted sector, lost
0.2 percent. Royal Bank of Canada, the country's biggest
lender, gave back 0.4 percent to C$61.29, and Bank of Montreal
 fell 0.5 percent to C$62.24.
    The materials sector, which includes mining stocks, slipped
0.2 percent despite a gain in gold-mining stocks.
    Miner Teck Resources Ltd was down 1.6 percent at
C$22.03.
    But shares of energy producers gained 0.3 percent after oil
prices climbed.