3 Min Read
*Energy shares drop as oil falls to $82 on recession fears
*Huge Sept. job creation shrugged off
*Ottawa's C$25 bln mortgage plan also dismissed
TORONTO, Oct 10 (Reuters) - The Toronto Stock Exchange's main index dropped on Friday morning as oil slid to $82 a barrel on fears demand will shrink if the world economy goes into recession, pulling down energy shares.
An announcement that Canada will buy up to C$25 billion in insurance mortgages to free up the "scarcity" of private sector lending [ID:nN10361962] and a surprise jump in September jobs data did not help cheer the market. [ID:nN10365080]
Leading the way down was the heavily-weighted oil and gas sector, which sank 3.6 percent as oil tumbled more than 5 percent to around $82 a barrel on persistent worries that demand for the commodity would falter on fears of a global recession. [ID:nT134769].
Shortly before 10:30 a.m., the S&P/TSX composite index .GSPTSE was down 118.69 points, or 1.24 percent, at 9,481.49, with seven of its 10 main groups lower. Earlier, the benchmark index plummeted more than 5 percent.
The financial services sector rose 0.2 percent with Royal Bank of Canada (RY.TO), up 3 percent to C$42.70.
The resource-laden materials group sank 1.5 percent as base metals prices tumbled on mounting fears of a looming recession. [ID:nLA225100]
Barrick Gold (ABX.TO) fell 2.3 percent C$39.47, while Inmet Mining IMN.TO fell 8 percent to C$32.81.
In economic news, Canadian employment unexpectedly soared by 107,000 jobs in September, according to Statistics Canada data. Most of the increase was in part-time employment but even the rise in full-time jobs exceeded the increase in total employment foreseen in a Reuters survey of analysts. ($1=$1.18 Canadian) (Reporting by Jennifer Kwan; Editing by Peter Galloway)