CANADA STOCKS-TSX lower on weak resources, European banks

Tue Sep 7, 2010 10:40am EDT
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* TSX down 49.29 points, or 0.4 percent, at 12,095.63

* Six of index's 10 main groups lower (Updates to midmorning, adds quote)

By Jennifer Kwan

TORONTO, Sept 7 (Reuters) - Toronto's main stock index fell on Tuesday morning as oil and base metals prices sank on a stronger U.S. dollar and renewed concerns about Europe's banking sector.

Weakness in the index's commodity and banking-linked sectors showed up in such stocks as Suncor Energy SU.TO, down 0.8 percent at C$33.64; Teck Resources TCKb.TO down 3.2 percent at C$38.45; and Toronto-Dominion Bank TD.TO, which shed 1.6 percent to C$73.24.

World stocks were lower while the euro fell broadly after the Wall Street Journal reported that Europe's recent "stress tests" on major banks underestimated some lenders' holdings of potentially risky government debt. [MKTS/GLOB]

"The concerns that upset everyone in May and June are still hanging around," said Barry Schwartz, vice president and portfolio manager at Baskin Financial Services, referring to worries about the health of the European banking sector.

Schwartz said there is also lingering concern about U.S. unemployment and sluggish global growth.

At 10:05 a.m. (1405 GMT), the S&P/TSX composite index .GSPTSE was down 49.29 points, or 0.4 percent, at 12,095.63, with six of its 10 main sectors lower. The TSX index had opened slightly higher before turning negative.   Continued...