October 13, 2011 / 3:03 PM / in 6 years

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

   * 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)                 

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below