CANADA STOCKS-TSX drops as China data sparks global pullback

Thu Oct 13, 2011 4:52pm EDT
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 * TSX drops 118.07 points, or 0.98 pct, to 11,911.89
 * Nine of 10 main sectors lower
 * Investors retreat from equities and commodities
 (Updates to close with comments and share prices)
 By Ashleigh Patterson
 TORONTO, Oct 13 (Reuters) - Toronto's main stock index
closed nearly 1 percent lower on Thursday as cooling demand in
China and weak U.S. earnings spurred a retreat after two days
of strong gains.
 Financial shares in particular took a beating as investors
shunned risk assets after disappointing earnings from U.S. No.
2 bank JPMorgan Chase & Co JPM.N.
 The bank's quarterly profit dropped 25 percent,
underscoring how global market turmoil and euro zone debt
worries have hit investment bank revenues. The earnings sent
the Dow Jones industrial average and the S&P 500 index lower
after three days of strong gains.[ID:nN1E7951DK]
 In Toronto, Bank of Nova Scotia BNS.TO was off 1.92
percent at C$52.18. Royal Bank of Canada RY.TO slid 2.07
percent to C$47.82, while Manulife Financial MFC.TO sank 3.04
percent to C$12.46.
  "We seemed to be off somewhat because of the negative
reaction to JP Morgan bank earnings south of the border," said
Gavin Graham, president of Graham Investment Strategy, adding
the lack of confidence prompted risk aversion in Canadian
 "If we're seeing those bad numbers in U.S. banks, even
though Canadian banks are in a healthier position, we still saw
most of our banks off 1.5 percent."
 The Toronto Stock Exchange's S&P/TSX composite index closed
down 118.07 points, or 0.98 percent, at 11,911.89 .GSPTSE.
Nine of the index's 10 main sectors were down. The information
technology sector had a slight gain.
 The retreat came after the TSX hit a three-week high on
Wednesday, rising 1.3 percent after putting in a strong
performance on Tuesday.
 Concerns over global economic momentum persisted as data on
Thursday showed China's trade surplus narrowed for a second
straight month in September, reflecting a cooling economy, with
both export and import growth rates easing. [ID:nL3E7LD191]
 Worries about a slowdown in the Asian powerhouse sparked a
global retreat from equities, oil and other commodities. China
is the world's second largest consumer of oil. [O/R]
 Suncor Energy SU.TO fell to C$29.14, down 1.59 percent
while Cenovus Energy CVE.TO fell 1.58 percent to C$34.26.
 The TSX's materials sector also suffered as risk aversion
drained copper market sentiment and sent bullion prices lower.
China is the world's largest copper consumer.[MET/L]
 Barrick Gold ABX.TO slid 2 percent to C$48, while
Goldcorp G.TO shares dropped 1.54 percent to C$47.90.
 ($1=$1.02 Canadian)
 (Reporting by Ashleigh Patterson; editing by Peter Galloway)