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* TSX down 142.27 points, 1.2 pct, at 11,481.88
* Nine of 10 sectors weaker, golds up (Updates with details, commentary)
By Claire Sibonney
TORONTO, Oct 3 (Reuters) - Toronto's main stock market index tumbled on Monday after an admission from Greece that it will miss deficit targets sparked a sell-off in global equities and commodities, though rallying gold-mining shares helped cushion the fall.
Despite harsh new austerity measures, Greece's draft budget brought the specter of a default closer and will weigh as euro zone finance ministers meet to discuss the next steps toward resolving the currency area's sovereign debt crisis. [nL5E7L31G6] [nL5E7KU1LO]
Among the heaviest decliners, Suncor Energy (SU.TO) slid 3 percent to C$25.97, Canadian Natural Resources (CNQ.TO) dropped 2.4 percent to C$30.04 and Royal Bank of Canada (RY.TO) lost 1.4 percent to trade at C$47.38.
U.S. data that showed September manufacturing was better than expected did little to boost the commodity-heavy TSX, which underperformed Wall Street. [ID:nN1E7920I2] [.N]
"We need to go back to Friday where Canada strongly outperformed the U.S. market," said Francis Campeau, broker at MF Global Canada in Montreal. "We're playing catch-up."
Still, Friday marked the end of the worst quarter for Canadian equities since 2008. The TSX extended losses on Monday despite positive flows usually seen on the first day of the new quarter.
"Most of the price action recently has been more on the macro level than Canada-specific or single-name specific and today is another example ... the inflows don't counterweight the amount of pessimism in the market," added Campeau.
At 10:25 a.m. (1425 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 142.27 points, or 1.2 percent, at 11,481.88.
Gold mining shares were a bright spot on the index, climbing 1.4 percent as bullion headed for its largest one-day rise in nearly a month. Barrick Gold (ABX.TO) rose 1 percent to C$49.60, while Goldcorp Inc (G.TO) added 0.8 percent to C$48.43.
($1=$1.05 Canadian) (Editing by Jeffrey Hodgson)