UPDATE 3-Banks, Canadian Tire drag Toronto stocks lower
(Adds details, quotes)
* TSX index falls as financials hit by credit crunch fears
* Canadian Tire down after cuts earnings forecast
* Energy sector gains along with oil
By Leah Schnurr
TORONTO, Aug 7 (Reuters) - The Toronto Stock Exchange's main index finished lower on Thursday in a broad decline sparked by losses in the financial-services sector on nagging worries over more fallout from the credit crunch.
Canadian Tire CTCa.TO was the biggest drag on the index after it reported a lower quarterly profit and cut its earnings forecast for the year. Shares of the country's largest auto parts and household goods retailer shed 7.7 percent.
Among financials, Manulife Financial (MFC.TO: Quote) lost 3.7 percent after it said its profit fell, hurt by weak equity markets, a stronger Canadian dollar and tax-related provisions.
Banks got caught up by rising fears of more fallout from the U.S. credit crisis as insurer American International Group AIG.N reported a big loss after more writedowns. Continued...