CANADA STOCKS-TSX falls on European uncertainty, Apple miss

Wed Oct 19, 2011 10:45am EDT
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 *TSX down 65.79 points, or 0.6 pct, at 11,987.32
 *Five of 10 index sectors weaker, golds drag
 *Agnico sinks 18 pct on Quebec mine shutdown
 (Updates with details, comments)
 By Claire Sibonney
 TORONTO, Oct 19 (Reuters) - Toronto's main stock index was
lower on Wednesday morning as nagging uncertainty about
Europe's debt crisis pushed commodities lower and as U.S. tech
darling Apple shocked investors with results that missed
 Prices for oil and base metals were hurt by Moody's
downgrade of Spain's sovereign debt rating, which further
complicated the euro zone crisis. On the other side of the
coin, safe-haven gold was hit by hopes for a speedy resolution
to the crisis after a report that Europe may beef up its
bailout fund. [O/R] [MET/L] [GOL/]
 Agnico Eagle AEM.TO was the most heavily weighted
decliner, plunging 18.1 percent to C$47.48 after announcing it
is indefinitely suspending mining operations and production at
its Goldex mine in Quebec due to water inflow and ground
instability. [ID:nL3E7LJ1GZ]
 "Gold had a pretty ugly day yesterday ... and stocks still
appear to be under some pressure, at least the big-cap ones,
and the Agnico news was pretty disconcerting overall," said
Paul Hand, managing director at RBC Capital Markets.
Goldcorp G.TO, down 3 percent at C$46.32, and Barrick Gold
ABX.TO, off 2.2 percent at C$46.74, rounded out the top three
 Also knocking market confidence was a mixed bag of U.S.
earnings reports. Apple Inc's AAPL.O results missed estimates
for the first time in years as it sold far fewer iPhones than
expected, sending its shares down almost 5 percent to $403.03.
 At 10:26 a.m. (1426 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down 65.79 points, or 0.6
percent, at 11,987.32. Five of the index's 10 main groups were
weaker, with energy and financials largely flat.
 The TSX rallied sharply on Tuesday after a story in
Britain's Guardian newspaper said that France and Germany had
reached a deal to expand the euro zone's rescue fund to more
than 2 trillion euros, but two senior European Union officials
later dismissed the report. [ID:nB5E7L5021]
 In Greece, center of the debt storm, unions began a 48-hour
general strike, the biggest protest in years, as parliament
prepared to vote on sweeping austerity measures designed to
stave off a debt default. [ID:nL5E7LJ05J]
 "The whole euro thing is minute to minute depending on
which minister says what and the glass is half full or half
empty at any point in time," Hand said, noting volumes are
still very thin due to the uncertainty, exaggerating market
 ($1=$1.01 Canadian)
 (Reporting by Claire Sibonney; editing by Peter Galloway)