CANADA STOCKS-TSX pauses after 7-week selloff

Mon Apr 16, 2012 10:50am EDT
 
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* TSX up 8 points to 12,048.41
    * Materials drag as financials, energy rise

    By Claire Sibonney	
    TORONTO, April 16 (Reuters) - Toronto's main stock index
paused on Monday after notching its seventh straight weekly loss
in the last session, as worries over Europe's debt crisis and
slowing growth in China offset some better-than-expected U.S.
economic data.	
    Financials and telecoms were among the heaviest gainers, up
0.4 percent and 0.5 percent respectively. Toronto-Dominion Bank
 rose half a percent to C$82.36, Royal Bank of Canada
 climbed 0.4 percent to C$56.11 and BCE Inc 
added 0.7 percent to C$39.87. 	
    "Those are two areas of course where people, while they
don't know what to do in the market, look at these as
buy-and-hold things simply for the dividend payments because
they're very attractive in today's interest rate environment,"
said Fred Ketchen, director of equity trading at Scotia McLeod.	
    "I think what we're seeing here is a little bit of
confidence coming back into the market." 	
    At 10:40 a.m. (1440 GMT), the Toronto Stock Exchange's
S&P/TSX composite index was up 8.02 points, or 0.07
percent, at 12,048.41, after briefly turning negative. Six of
the 10 sectors were positive, including energy, up 0.4 percent.	
    U.S. retail sales rose more than expected in March as
Americans shrugged off high gasoline prices, indicating economic
growth in the first quarter did not soften as much as feared.
 	
    A recent spate of soft economic data, highlighted by the
recent March U.S. payrolls report, increased worry the recovery
in the economy had begun to slow.   	
    Meanwhile, market sentiment in the euro zone was still on
edge as Spain's 10-year government bond yields rose above 6
percent for the first time this year and the cost of insuring
its debt hit a record high. 	
    "Greece was the first drag, Spain is the second drag, and
the question is after they get finished with Spain, who comes
next, it might be Italy for goodness' sake," added Ketchen.	
    Worries about Europe crimped oil and precious metal prices,
while caution about the outlook for demand from top consumer
China also kept gains in check for copper.  	
    Among the most influential decliners on the index, First
Quantum Minerals sank 5.2 percent to C$20.48, Silver
Wheaton was down 4.4 percent to C$29.75 and Barrick
Gold lost 0.5 percent to C$41.27.