CANADA STOCKS-TSX dives 2 percent on global growth fears

Thu Mar 10, 2011 4:48pm EST
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 * TSX ends down 246.13 points, or 1.8 pct, at 13,638.58  
 * All 10 main sectors lower
 * China data, Spain debt downgrade stoke growth concerns
 (Updates to close, adds details, comments)
 By Claire Sibonney
 TORONTO, March 10 (Reuters) - Toronto's main stock index
retreated for a fourth-straight session on Thursday, chalking
up its biggest drop in seven months as it reacted to
disappointing economic data from China and a Spanish debt
  The index's powerhouse energy and materials sectors led
the slide, down 2.6 percent and 2.8 percent, respectively,
undermined by a sharp early drop in oil and metals prices,
although some commodity prices regained ground on reports of
unrest in oil-rich Saudi Arabia.
 Commodities priced in U.S. dollars such as oil, gold, and
copper fell as the greenback rallied on safe-haven buying after
Moody's cut Spain's credit rating. Also, figures that showed
China ran a trade deficit in February underscored concerns
about the robustness of global economic growth. [O/R] [GOL/]
 Among the biggest decliners, Suncor Energy (SU.TO: Quote), plunged
3.5 percent to C$41.67, fellow oil company Canadian Natural
Resources (CNQ.TO: Quote) dropped 3 percent to C$44.94, and Barrick
Gold Corp (ABX.TO: Quote) declined 1.7 percent to C$49.13.
 "We're seeing some flight to safety and out of risky
assets, so that's putting a lot of pressure on stocks today,
said Youssef Zohny, portfolio manager at Van Arbor Asset
Management in Vancouver.
 "Overall it's mostly macro factors driving the market, all
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended down 246.13 points, or 1.8 percent, at
13,638.58. The index was at its lowest point since Feb. 1 and
all 10 of its main sectors were lower. The heavyweight
financial group fell 1.3 percent.
 During the day, the TSX declined more than 2 percent, its
biggest fall since August.
 Zohny said the index's close below the 50-day moving
average of 13,696 signaled the biggest danger to the market's
eight-month rally so far.
 "The next few weeks will determine if the uptrend has been
severely disabled and we're in a larger correction, but that's
not necessarily the case yet," he said. "We'll need a couple
more weeks to sort what's happening in the Middle East as well
as overseas in Asia."
 ($1=$0.98 Canadian)
  (Reporting by Claire Sibonney; editing by Peter Galloway)