CANADA STOCKS-TSX falls on renewed European bank worries

Tue Sep 7, 2010 4:44pm EDT
 
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* TSX closes 42.94 points lower at 12,101.98

* Six of index's 10 main groups fall (Updates to close, adds details, quotes)

By Claire Sibonney

TORONTO, Sept 7 (Reuters) - Toronto's main stock index fell on Tuesday alongside a global sell-off of risk-prone assets after fears about the health of the European banking sector came back into focus.

Reports that the results of Europe's bank stress tests, aimed at shoring up financial-sector confidence, were not particularly strong and that German banks may still have to raise a lot of capital hurt stock and commodity prices as investors sought shelter in safer havens.

Among the Toronto index's biggest decliners, heavily weighted financial shares lost 0.8 percent and energy shares fell 1.1 percent.

Toronto-Dominion Bank (TD.TO: Quote) shed 1.1 percent to C$73.58, while Suncor Energy (SU.TO: Quote) was down 1.3 percent at C$33.47.

Base metals prices, down 2 percent, were also hit hard. Base metals miner Teck Resources TCKb.TO was down 2.4 percent at C$38.74.

"I think we will see (the euro zone) back on the front burner," said Jason Hornett, vice president and fund manager at Bissett Investment Management.   Continued...