CANADA STOCKS-TSX pulled lower by sagging commodities

Mon Jun 15, 2009 10:30am EDT
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* TSX down 1.28 percent at 10,508.98

* U.S. dollar strength pushes commodities prices lower (Adds details, quotes)

By Jennifer Kwan

TORONTO, June 15 (Reuters) - Toronto's main stock index fell on Monday morning as a strong U.S. dollar pushed down commodity prices, putting the stock market's big resource shares under pressure.

The greenback rose broadly after Russia's finance minister expressed confidence in the currency [ID:nLF600321], helping to push oil CLc1 down to around $71 a barrel, while gold and base metals prices were also lower.

Among the stocks leading the TSX index lower were oil company Suncor Energy (SU.TO: Quote), down 2.8 percent at C$37.96, and miner Goldcorp (G.TO: Quote), which fell 0.7 percent to C$38.79.

The TSX index's energy sector was down 2.2 percent, while its mining-heavy materials group fell 1.4 percent.

The weakness in commodities was also due to a report from China that cited an influential economist as saying China's economy will not experience a rapid recovery because it will take time to find a new growth engine to replace sagging exports.[ID:nPEK255337]

China has widely been expected to be a major driving force behind a global economic turnaround, said Francis Campeau, broker at MF Global Canada in Montreal.   Continued...