UPDATE 1-Toronto stock index sinks as oil drops
*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. Continued...