CANADA STOCKS-Oil shares pull TSX lower; China, Fed in focus

Mon Mar 15, 2010 10:38am EDT
 
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 * TSX down 49.16 points, or 0.41 percent, at 11,964.66
 * Energy sector leads TSX lower as oil below $80
 * China policy tightening, U.S. Fed in focus
 (Adds details, quote)
 By Jennifer Kwan
 TORONTO, March 15 (Reuters) - Toronto's main stock index
retreated on Monday morning as oil and base metals prices
declined due in part to worries about monetary policy
tightening in China, pressuring commodity shares.
 Canadian Natural Resources CNQ.TO fell 2 percent to
C$73.23 and Suncor Energy SU.TO dropped 1.6 percent to
C$31.32, while EnCana Corp ECA.TO shed 1 percent to C$33.87.
 The index's oil and gas group fell 1.1 percent.
 Its materials group, home to miners and fertilizer
companies, dropped 0.6 percent as Potash Corp of Saskatchewan
POT.TO fell 0.7 percent to C$127.09, and First Quantum
Minerals FM.TO lost 0.3 percent to C$87.79. [MET/L] [GOL/]
 Toronto followed global markets, which faltered on concerns
about monetary tightening in China and caution ahead of U.S.
and Japanese central bank policy meetings this week.
[MKTS/GLOB]
 "If China were to tighten, the sense is that it would slow
demand for commodities that we produce in abundance here in
Canada," said Paul Taylor, chief investment officer at BMO
Harris Investment Management Inc.
 "The question is where does it all net out in terms of the
sustainability of the economic recovery," he added.
 Oil prices dropped below $81 a barrel, pulled lower in part
by a firm U.S. dollar [O/R], while copper prices were
undermined by the China worries. [MET/L]
 At 10:12 a.m. (1412 GMT), the Toronto Stock Exchange's key
S&P/TSX composite index .GSPTSE was down 49.16 points, or
0.41 percent, at 11,964.66.
 The index's close above 12,000 on Friday was its highest
finish in about 18 months.
 ($1=$1.02 Canadian)
 (Reporting by Jennifer Kwan; editing by Peter Galloway)