CANADA STOCKS-TSX falters as U.S. data hits resources

Wed Mar 28, 2012 10:47am EDT
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* TSX falls 85.52 points, or 0.68 pct, to 12,426.52

* Nine of 10 main sectors lower

* U.S. durable goods data hits commodity prices

* Market reacts to Ontario budget

By Jennifer Kwan

TORONTO, March 28 (Reuters) - Canada's main stock index sank on Wednesday as resource shares were hit by softer underlying commodity prices and as investors reacted to the Ontario budget released the day before.

A mix of resource names led the index lower, including Suncor Energy Inc, down 0.6 percent at C$32.67, and Cenovus Energy Inc, which fell 2 percent to C$35.55. Barrick Gold Corp sank 1 percent to C$43.22, while Teck Resources Ltd dropped 2 percent to C$35.02.

The key pillars of energy and materials, which comprise some 40 percent of the broader index, sank 1.1 percent and 1.2 percent, respectively, as oil prices fell for a second session on Wednesday on the possibility of a release of strategic oil reserves by the United States and some European nations.

Copper prices fell in part as weaker-than-expected U.S. durable goods data cast doubt on the pace of recovery in the world's biggest economy. The data weighed on investor confidence and on the outlook for base metals demand. Bullion prices fell as well.   Continued...