CANADA STOCKS-TSX falls on revival of European bank fears

Tue Sep 7, 2010 5:11pm EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* 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.

Worries about Europe's banks resurfaced after the Wall Street Journal reported major European lenders understated holdings in potentially risky government debt during "stress tests" designed to shore up confidence. The report hurt stock and commodity prices as it pushed investors toward shelter in safer havens.

Also weighing on the market, Germany's banking association said the country's 10 biggest banks may need 105 billion euros in new capital as regulators revamp rules designed to prevent future crises. [ID:nLDE6850Q9]

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

Toronto-Dominion Bank TD.TO shed 1.1 percent to C$73.58, while Suncor Energy SU.TO 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.   Continued...