CANADA STOCKS-TSX drops as Fed worries, energy shares weigh

Thu Jan 29, 2015 10:59am EST
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* TSX down 189.14 points, or 1.3 percent, at 14,413.74

* Eight of 10 main index sectors decline

* Potash slips after reporting results

By John Tilak

TORONTO, Jan 29 (Reuters) - Canada's main stock index dropped 1.3 percent on Thursday, extending the previous session's sharp fall as investors remained nervous about the Federal Reserve's outlook for raising U.S. interest rates.

Weakness in the price of U.S. crude oil, another factor hurting the market, helped send down shares of energy producers nearly 3 percent.

The Fed said on Wednesday the U.S. economy was expanding "at a solid pace," signaling to investors the U.S. central bank was on track to raise rates later this year.

The benchmark TSX, which tumbled about 1.6 percent on Wednesday, slipped to its lowest in a week, while measures for market volatility also rose.

"We have a new normal, which is a more volatile market than in the past," said Douglas Davis, vice chairman at Davis-Rea.   Continued...