CANADA STOCKS-TSX drops more than 3 pct as global markets tumble

Thu Aug 4, 2011 11:28am EDT
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   * TSX down down 391.74 points, or 3.06 pct, at 12,424.29
 * All sectors lower as economic woes persist, energy leads
 * U.S. stocks also drop about 2 pct
 (Adds details, quotes)
 By Andrea Hopkins
 TORONTO, Aug 4 (Reuters) - Toronto's main stock index
slumped more than 3 percent on Thursday, as rising concerns
about global growth more than wiped out the previous session's
late-day rally and knocked world markets lower.
 Major U.S. stock indexes were also down more than 2
percent, resuming their downturn after a labor market report
became the latest datapoint to show the U.S. economy has
stalled. [.N]
 Global markets were broadly weaker overnight as investors
worried about persistent economic woes in the United States and
Europe, while Japan and Switzerland intervened to stem the rise
of their currencies against the faltering U.S. dollar.
 "There is a great deal of continuing concerns about the
economic situation in North America, as well as other places,
and people don't have confidence to participate in this
market," said Fred Ketchen, director of equity trading at
 "People are saying: Let's get out and we'll keep our money,
and buy again down the road when things look even worse and
everything is cheaper."
 At 11:13 a.m. (1513 GMT) the the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE slid 391.74 points, or 3.06
percent, to 12,424.29.
 All 10 of Toronto's main groups were lower, led by the
heavyweight energy, material and financial sectors.
 The TSX's energy group lost 3.28 percent, stung by a rise
in U.S. petroleum inventories and worries about soft demand
amid the U.S. and European debt crises and a struggling global
economy. [O/R].
 The financial sector was 2 percent lower despite healthy
earnings reports by some of Canada's big insurers.
 Royal Bank of Canada (RY.TO: Quote), Canada's largest bank, was
the most influential decliner, down 2.4 percent at C$50.06,
while fertilizer giant Potash Corp (POT.TO: Quote) was in the No. 2
spot, down 4.7 percent to C$52.51.
 Suncor Energy Inc (SU.TO: Quote) was also a big laggard, down 3.6
percent to C$33.41.
 A slew of positive earnings did little to stem the losses,
with both gold miners and life insurers failing to offset the
broader weakness.
 "If you're looking around for good news, we've got earnings
out ... but not even a surprise in the upside on earnings is
helping. People have got a very very negative view on
everything and they are running to the sidelines," Ketchen
 ($1=$0.97 Canadian)
 (Editing by Rob Wilson and Jeffrey Hodgson)