CANADA STOCKS-TSX battered by worries over economic recovery

Mon Aug 17, 2009 4:54pm EDT
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* TSX down 316.42 points, or 2.92 percent, at 10,531.59

* Slide in commodity prices hits index

* Financials drop 2.6 percent on recovery worries (Adds details, quotes)

TORONTO, Aug 17 (Reuters) - Toronto's main stock index fell broadly on Monday, touching its lowest level in just over two weeks, with commodity-linked issues sliding on weak oil and metal prices, while worries over the pace of economic recovery rattled bank shares.

Energy, financial, and materials issues led the broad decline as commodity prices bore the brunt of recovery doubts, and worries about the health of the U.S. consumer were underpinned by below-par results from U.S. home improvement retailer Lowe's Cos Inc (LOW.N: Quote).

As well, earlier data showed Japan's economy emerged from its longest recession in at least 60 years in the second quarter, but analysts warned the recovery may be shaky. [ID:nT212505]

"We are down right out of the gate," said Paul Gardner, partner and portfolio manager at Avenue Investment Management.

"This clearly has a lot to do with the fact that a bit of the euphoria is over with."

The Toronto Stock Exchange S&P/TSX composite index .GSPTSE tumbled 316.42 points, or 2.92 percent, to 10,531.59, with all of its 10 main groups lower. Earlier in the day, the index touched its lowest level since July 30.   Continued...