CANADA STOCKS-TSX tumbles on China, U.S. economic worries

Wed Aug 11, 2010 10:26am EDT
 
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*TSX down 157.23 points, or 1.33 percent, at 11,681.06

*All TSX sectors lower (Adds details, quote)

By Jennifer Kwan

TORONTO, Aug 11 (Reuters) - Toronto's main stock index fell sharply on Wednesday morning as commodity prices sank on persisting worries about weaker growth in China and the United States.

The concerns pushed the price of oil below $80 a barrel, hurting names like Suncor Energy (SU.TO: Quote) and Canadian Natural Resources (CNQ.TO: Quote), down 2.4 percent and 1.7 percent, respectively. [O/R]

The index's materials sector fell as copper prices tumbled to their lowest level in more than a week as confidence crumbled in the face of U.S. dollar strength and renewed worries about growth prospects in the United States. [MET/L] Teck Resources (TCKb.TO: Quote) dropped 2.4 percent to C$35.21.

In financials, Royal Bank of Canada (RY.TO: Quote) was down 1.7 percent at C$52.44, and Toronto-Dominion Bank (TD.TO: Quote) fell 1.7 percent to C$72.23.

The TSX followed Wall Street lower as the U.S. Federal Reserve's gloomier assessment of the economy rattled investors and the U.S. central bank's measures to support it failed to reassure world markets. [.N] [ID:nN09275781]

"People are digesting (the Fed) comments and they haven't encouraged people too much," said David Cockfield, senior vice president and portfolio manager at MacNicol and Associates Asset Management. "The realization is sinking in that it's going to be a long, hard grind ahead for the U.S. economy. Of course that feeds back into Canada as well."   Continued...