CANADA STOCKS-TSX falls as China data weighs on miners

Thu Mar 11, 2010 10:35am EST
 
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 * TSX down 17.43 points, or 0.15 percent, at 11,943.63
 * China inflation data weighs on miners
 * Transat down 24 percent after it reports loss, sees more
 (Adds details, quote)
 By Jennifer Kwan
 TORONTO, March 11 (Reuters) - Toronto's main stock market
index edged lower on Thursday morning as resource prices
slipped and data from the United States and China spurred a
return of worry about the stability of the economic recovery.
 Miner First Quantum Minerals FM.TO fell 0.3 percent to
C$85.61, copper miner Quadra Mining QUA.TO dropped 1.5
percent to C$17.32, and Teck Resources TCKb.TO dropped 1
percent to C$41.17 as base metals prices slid after data showed
a spike in Chinese inflation. [METL/]
 The market worried the higher Chinese inflation would spawn
higher interest rates, which would slow economic activity and
demand for resources.
 Chinese consumer inflation jumped to a 16-month high in
February and a raft of other data displayed broad-based
strength, providing fresh arguments for policy tightening
sooner rather than later. [ID:nTOE6290B5]
 "If the main reason why rates are going up is because
they're putting the brakes on things to curb inflation then
because China is the big buyer of commodities that would have
the impact," said Robert Lauzon, managing director of trading
at Middlefield Capital Corporation.
 In the United States, jobless claims fell less than
expected, suggesting a slow labor market recovery.[.N]
[ID:nN11203719]
 At 10:02 a.m. (1502 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down 17.43 points, or
0.15 percent, at 11,943.63, with eight of its 10 main groups
lower.
 The energy sector fell 0.1 percent as oil prices slipped
[O/R]. Canadian Natural Resources CNQ.TO sagged 0.1 percent
to C$75.74.
 Shares of Bank of Nova Scotia BNS.TO dropped 0.4 percent
to C$48.95. Thailand's Thanachart Bank, 49 percent owned by
Scotiabank, said it will pay $1 billion for a 47.6 percent
stake in Siam City Bank SCIB.BK in Thailand's biggest
acquisition in four years. [ID:nSGE62A087]
 Transat AT Inc TRZb.TO fell 24 percent to C$14.83. The
Canadian holiday travel company posted a first-quarter net
loss, hurt by lower selling prices, and said it expects to post
a loss in the second quarter. [ID:nSGE62A0HT]
 ($1=$1.03 Canadian)
 (Reporting by Jennifer Kwan; editing by Peter Galloway)