CANADA STOCKS-TSX tumbles on global growth fears
* TSX ends down 157.38 pts, or 1.3 pct, at 11,659.65 * Resource, financial shares lead losses * Soft U.S., Canada jobs data hurts risk sentiment * Global growth fears spook investors By Jon Cook TORONTO, July 6 (Reuters) - Toronto's main stock index dove on Friday and financial shares wilted, unable to find sustenance from lackluster jobs data in Canada and the United States that underscored concern the global economy was slowing further. As a heat wave gripped Canada's most populous city, risk sentiment was chilled by weak North American employment numbers. U.S. nonfarm payrolls added just 80,000 jobs in June - far fewer than needed to bring down the 8.2 percent unemployment rate - fueling concerns that Europe's debt crisis is deepening a slowdown in the U.S. economy. "The market is hoping for good news for a change, but this hasn't happened for the last three months," said Elvis Picardo, strategist and vice president of research at Global Securities in Vancouver. "It obviously had a pretty big impact on market sentiment on the day." In Canada, job growth slowed in June for a second straight month in a reality check after outsized employment gains earlier this year, firming the market's view that the Bank of Canada won't act soon on recent hints of a rate hike. Nearly all of Canada's 10 main sectors were in the red. The Canadian oil and gas and materials sub-indexes both fell 2.2 percent as U.S. crude futures tumbled more than 3 percent and copper and gold prices slumped. The most influential decliners included Suncor Energy , which slipped 3.4 percent to C$29.36, Canadian Natural Resources, down 3.5 percent to C$26.58, Barrick Gold , which shed 2.7 percent to C$37.55, and Teck Resources , off 3.2 percent at C$31.92. The disappointing U.S. results raised expectations the Federal Reserve would launch a new round of monetary stimulus, a Reuters poll of Wall Street economists showed on Friday. The Toronto Stock Exchange's S&P/TSX composite index finished down 157.38 points, or 1.3 percent, at 11,659.65. Despite the loss, the index ended the holiday-shortened week up 0.5 percent. Adding to the gloomy sentiment, an index of purchasing activity in the Canadian economy hit its lowest level in almost a year. The Ivey Purchasing Managers Index fell to 49.0 in June from 60.5 in May, its lowest since July, 2011. A reading below 50 indicates contraction. The weak jobs data came a day after China, the euro zone and Britain all loosened monetary policy, signaling growing alarm about the world economy. The central bank action failed to impress investors on Friday, pushing Spanish borrowing costs back up to unsustainable levels reached before last week's European Union summit took measures designed to ease the pressure. Canadian financial shares slid 1.2 percent, led by the country's biggest lenders. Royal Bank of Canada dipped 1.4 percent to C$52.78, Bank of Nova Scotia dropped 1.9 percent to C$52.85, and Toronto-Dominion Bank edged down 0.5 percent at C$79.50. Top insurer Manulife Financial Corp fell 3 percent to C$10.90. Investors were also spooked after IMF chief Christine Lagarde said the world economic outlook had deteriorated as both developed and big emerging nations show signs of slowing down. "We've got growth worries," said Fred Ketchen, director of equity trading at ScotiaMcLeod. "Given the fact that there's a whole lot of places that have instituted some kind of stimulus measures, so far it hasn't produced positive results." Friday's market swoon had traders looking ahead to the start of second-quarter earnings season next week. "If earnings come in pretty much as expected the market would be poised to rally in that case," said Picardo.
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