CANADA STOCKS-TSX hits 1-week low as golds tumble

Tue Oct 18, 2011 10:36am EDT
 
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 *TSX down 130.37 points, or 1.1 pct, at 11,792.67
 *Eight of 10 sectors lower; golds fall 3.3 pct
 (Updates with details, comments)
 By Claire Sibonney
 TORONTO, Oct 18 (Reuters) - Toronto's main stock index fell
more than 1 percent to a one-week low on Tuesday morning as
slower-than-expected Chinese economic growth and a warning on
France's triple-A sovereign credit rating prompted investors to
back away from riskier assets.
 Oil and base metal prices were down but gold-mining shares
were the hardest hit, off 3.3 percent, as the price of bullion
looked set for its biggest one-day fall in two weeks. [GOL/]
 Barrick Gold (ABX.TO: Quote) lost 3.2 percent to C$46.70, Goldcorp
(G.TO: Quote) fell 3.6 percent to C$46.34, and Silver Wheaton (SLW.TO: Quote)
dropped 5.1 percent to C$30.50.
 "The whole metal index is hurting," said John Kurgan,
senior market strategist at MF Global Canada, noting precious
metal prices were under added pressure ahead a closely watched
vote by the U.S. futures regulator on commodity market
speculation. [ID:nN1E79G201]
 He said traders were talking about the chance that the
Commodity Futures Trading Commission might vote to tighten
position limits. "If they vote to reduce position limits
perhaps some hedge funds would have to liquidate a number of
these gold and silver contracts they hold," Kurgan said.
 At 10:11 a.m. (1411 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down 130.37 points, or
1.09 percent, at 11,792.67. Eight of the 10 main index groups
were weaker, including energy shares, down 1.3 percent,
materials, off 3.2 percent, and financials, 0.5 percent lower.
 Investors remained cautious after Moody's said it may slap
a negative outlook on France's credit rating in the next three
months, and data showed China's annual gross domestic product
expanded at its slowest pace since 2009 in the latest quarter.
[ID:nN1E79G1VP]
 Also hurting confidence, Goldman Sachs (GS.N: Quote) reported a
quarterly loss for the second time in its history, hurt by
declines in the value of investment securities and customer
trading assets. [ID:nN1E79G1UJ]
 ($1=$1.02 Canadian)
 (Editing by Peter Galloway)