CANADA STOCKS-TSX falls on weak outlook, worries over Fed

Tue Aug 10, 2010 11:03am EDT
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* TSX falls 66.25 points, or 0.6 percent, to 11,797.31

* Eight of 10 sectors lower (Updates with details, commentary)

By Claire Sibonney

TORONTO, Aug 10 (Reuters) - Toronto's main stock index stumbled on Tuesday morning after soft U.S. and Chinese economic data weighed on already cautious sentiment ahead of a U.S. Federal Reserve monetary policy meeting later in the day.

Worried investors flocked to the safe haven of U.S. dollar, which dragged down commodity prices and Toronto's resource-loaded index.

The materials sector was down 0.8 percent after copper and gold prices declined. First Quantum Minerals (FM.TO: Quote) slipped 1.7 percent to C$64.88 ahead of its quarterly results, and Barrick Gold Corp (ABX.TO: Quote) was down 0.8 percent at C$44.13.

Energy stocks were 0.6 percent lower as oil dropped more than $2 to below $80 a barrel, pulling down Canadian Natural Resources (CNQ.TO: Quote) by 1.7 percent to C$36.24.

Uncertainty has been building over the U.S. recovery and investors are looking to see what measures, including printing more money, the the Fed might take to prop up a faltering economy. [ID:nN09275781]

Data showed an unexpected drop in U.S. non-farm productivity in the second quarter, the first decline since late 2008, underlining the softening pace economic recovery. As well, China reported a much slower than expected growth in July imports, signaling slowing domestic demand. [ID:nN10131732] and [ID:nTOE67904G]   Continued...