CANADA STOCKS-TSX dips as Europe woes offset Rogers earnings
* TSX down 69.90 pts, or 0.6 pct, at 11,475.64 * Greece, data intensify euro zone worries * Rogers Communications jumps 5 pct By Jon Cook TORONTO, July 24 (Reuters) - Canada's main stock index fell on Tuesday afternoon, led lower by energy and financial shares, as news Greece could miss bailout targets added to euro zone fears, overshadowing solid earnings from telecoms leader Rogers Communications Inc. Global equities slid on a host of downbeat news from Europe on Tuesday. Markets extended losses after comments by some European Union officials suggested Greece could miss debt reduction targets outlined in the country's bailout deal. The Greek worries came on the heels of dangerously high Spanish bond yields that reflected a growing belief that the country will need a bailout that the euro zone can barely afford. Weak manufacturing data, the threat of a credit ratings downgrade for Germany and disappointing second-quarter results from Deutsche Bank AG added to the euro zone malaise. "It's Europe, Europe, Europe and it doesn't really matter what the story is right now," said Paul Hand, managing director at RBC Capital Markets. Most of Canada's 10 main sectors were lower. The heavyweight energy complex led losses, falling 1.6 percent a day after Nexen Inc's $15-billion takeover bid by China's state-owned oil company CNOOC boosted oil and gas shares. The biggest decliners included Canadian Natural Resources , down 3.7 percent to C$27.72, Suncor Energy, which slid 1.5 percent to C$29.85, Cenovus Energy, off 2.2 percent at C$32.53, and Encana Corp, down 3.4 percent at C$20.80. "You had many of them up yesterday, probably unwarranted, in the context of takeovers," said Hand. "There's probably more of a corrective action in the oils." Canadian financials sank 1 percent on the euro zone worry. Declines were led by top banks, with Toronto-Dominion Bank sliding 1.1 percent to C$78.18, Bank of Nova Scotia down 0.9 percent at C$50.91, and Royal Bank of Canada off 0.3 percent to C$50.78. Around 1:40 p.m. EDT (1740 GMT), the Toronto Stock Exchange's S&P/TSX composite index was down 69.90 points, or 0.6 percent, at 11,475.64. The index retreated more than 100 points after touching a session high at 11,577.63. TELECOMS GAINS The safe-haven telecommunications sub-index led gains, rising 1.7 percent after earnings from Rogers Communications, Canada's largest mobile phone company, beat expectations. Rogers Communications shares jumped more than 5 percent to C$39.20 after it reported higher adjusted earnings on Tuesday as profit margins rose in its cellular phone business even as competition picked up. "The news story today is Rogers," said Barry Schwartz, vice president and portfolio manager at Baskin Financial Services. "I guess people were expecting them to cut their guidance, and the fact that they had such a material beat maybe tells us that they could have raised their guidance." In June, Rogers said it had cut 375 jobs to trim costs amid tough competition. The company employs about 30,000 people. Shares of telecom rival BCE Inc also rose, climbing 1.4 percent to C$41.87. In other positive news, Eldorado Gold Corp jumped 4.3 percent to C$10.39 after a Greek court revoked an order that temporarily stopped work at the Canadian company's gold mining project in the north of Greece, Eldorado said on Tuesday.
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