CANADA STOCKS-TSX sags on weak China data, soft commodities

Thu Oct 13, 2011 11:02am EDT
 
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   * TSX down 151.21 points, or 1.26 pct at 11,878.75
 * Nine of 10 main sectors lower
 * Commodities down on China data, U.S. earnings
 By Ashleigh Patterson
 TORONTO, Oct 13 (Reuters) - Toronto's main stock index fell
sharply on Thursday morning after disappointing trade data from
China and weak U.S. earnings soured recently upbeat investor
sentiment.
 Commodities and financials suffered as risk appetite abated
and investors sought safer havens on renewed concerns for the
global economic outlook.
 China's trade surplus narrowed for a second straight month
in September, reflecting a domestic cooling, with both export
and import growth rates both easing. [ID:nL3E7LD191]
 Brent crude and U.S. oil futures fell more than $2 a barrel
as worries of an economic slowdown in the Asian economic
powerhouse pressured oil prices and equities. China is the
second largest consumer of oil globally. [O/R]
 Suncor Energy SU.TO was one of the largest decliners on
the TSX, falling 1.89 percent to C$29.05.
 Gold miners were also weaker as bullion prices slid, facing
stiff headwinds from a stronger greenback, after U.S. data
signaled a slight improvement in the jobs market.
 Barrick Gold ABX.TO was the biggest decliner on the
Toronto index, falling 2.02 percent to C$47.99, while GoldCorp
G.TO slid 1.32 percent to C$48.01
 "In commodities, there has been recovery in risk appetite
over the last week or so and after that rally I think that
there has been some reassessment of what has changed in Europe
and the obstacles to bank recapitalization and greater investor
participation," said Fergal Smith, managing market strategist
at Action Economics.
 AT 10:28 a.m. (1428 GMT) the Toronto Stock Exchange's
S&P/TSX composite index was down 151.21 points, or 1.26
percent, at 11,878.75 .GSPTSE. Nine out of the index's 10
main sectors were down, except for slight gains in the
information technology sector.
 The retreat came after two days of solid gains, with the
TSX rising 1.3 percent on Wednesday to hit a three-week high.
 U.S. stocks were also lower, following disappointing
earnings from JPMorgan Chase & Co JPM.N. Third-quarter profit
dropped 25 percent, underscoring how global market turmoil and
euro zone debt worries have hit investment bank revenues.
[ID:nN1E7951DK]
 Toronto financials also saw declines, with Bank of Nova
Scotia BNS.TO off 1.24 percent at C$52.54. Royal Bank of
Canada RY.TO slid 0.68 percent to C$48.47, while
Toronto-Dominion Bank TD.TO fell 1.08 percent to C$74.39.
 "I also think there is this growing skepticism about
progress in Europe and doubts about banks readiness to accept
higher participation in another round of Greek writedowns or
their willingness to accept and enforce recapitalization," said
Smith.
 "After the strong rally equity markets have had, it's not
surprising there is some consolidation."
 ($1=$1.02 Canadian)
 (Reporting by Ashleigh Patterson; editing by Peter Galloway)