CANADA STOCKS-TSX falls on Fed report, gold-miner swoon

Wed Sep 8, 2010 3:26pm EDT
 
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* TSX down 8.50 points at 12,092.55

* Eight of index's 10 sectors lower (Updates to afternoon)

By Claire Sibonney

TORONTO, Sept 8 (Reuters) - Toronto's main stock market index turned lower on Wednesday afternoon as commodity shares fell and investor optimism was clouded by a U.S. Federal Reserve report that flashed signals of slowing economic growth.

Among the heavyweight decliners were gold miners, down 1.2 percent, and energy producers, down 0.3 percent -- despite strength in commodity prices, particularly gold, which neared a record high. [GOL/] [O/R]

Oil company Canadian Natural Resources (CNQ.TO: Quote) dropped 0.7 percent to C$34.51, while miner Goldcorp Inc (G.TO: Quote) fell 1.6 percent to C$43.63, while.

"Maybe if (the gold price) does break though there and get to an all-time high that will drag the stocks higher in the next couple of days," said John Kinsey, portfolio manager at Caldwell Securities.

"Again they've had a pretty good run ... I think today we're just getting a bit of a pause."

Earlier in the day, financial stocks, up 0.6 percent, led the TSX higher after a newspaper report said that Canada's bank watchdog may soon free banks to raise dividends, buy back shares, and make major acquisitions after imposing an unofficial moratorium to conserve bank capital during the financial crisis. [ID:nN08109368]   Continued...