CANADA STOCKS-TSX slides as Fed view adds to euro-zone fears

Wed Oct 19, 2011 5:13pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

 * TSX ends down 203.61 points, or 1.1 pct, at 11,849.50
 * Nine of 10 index sectors weaker, golds fall hard
 * Agnico sinks 18 pct after halting Quebec mine
 (Adds RIM, RIO Tinto bid for Hathor, comments)
 By Claire Sibonney
 TORONTO, Oct 19 (Reuters) - Canadian stocks lost all of the
previous day's big gains and more on Wednesday as a pessimistic
outlook from the U.S. Federal Reserve, euro zone bailout
doubts, and an earnings miss by U.S. tech darling Apple
prompted investors to cut risk.
 The Fed's coast-to-coast survey said that while the U.S.
economy kept growing slightly in September, its prospects
appeared to be dimming. [ID:nW1E7KM02O]
 The news drove down commodity prices that were already
under pressure from a Moody's downgrade of Spain's sovereign
credit rating earlier in the day, which further complicated the
euro zone debt crisis.
 Oil and copper prices dropped and gold's safe-haven status
didn't prevent it from being hit. [GOL/]
 Among the heaviest laggards on the TSX were gold miners,
which skidded 5.5 percent. Barrick Gold ABX.TO lost 4.4
percent to C$45.68 and Goldcorp G.TO was down 5.1 percent at
 "In the short term, gold is a risky asset just like any
other ... when traders are nervous, they start selling
everything," said Aaron Fennell, a futures specialist at
 Rounding out the top three most heavily weighted decliners,
gold miner Agnico Eagle AEM.TO sank 18.3 percent to C$47.35
after announcing it is indefinitely suspending mining
operations at its Goldex mine in Quebec due to water inflow and
ground instability. [ID:nL3E7LJ1GZ]
 Also knocking market confidence was a mixed bag of U.S.
earnings reports. Apple Inc's AAPL.O results late on Tuesday
missed estimates for the first time in years as it sold far
fewer iPhones than expected, sending its shares down more than
5 percent on Wednesday. [ID:nN1E79H1T6] [.N]
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended down 203.61 points, or 1.69 percent, at
11,849.50. Nine of the 10 sectors were weaker, while health
care gained 0.4 percent.
 "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," said Paul Hand, managing director
at RBC Capital Markets.
 The TSX rallied 1.1 percent 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. On Wednesday, however, French President
Nicolas Sarkozy said talks with Germany had stalled.
 In Greece, center of the debt storm, black-clad
demonstrators hurled stones and fire bombs at police in front
of parliament as tens of thousands rallied during a nationwide
general strike to coincide with a parliamentary vote on painful
new austerity measures. [ID:nL5E7LJ05J]
  In individual company news, global miner Rio Tinto
RIO.AX entered the battle for Canadian uranium explorer
Hathor Exploration HAT.TO with a C$578 million ($572 million)
friendly takeover offer that topped a hostile bid by Cameco
Corp CCO.TO, one of the world's biggest uranium producers.
 Hathor shares surged 9.2 percent to C$4.40, while Cameco
lost 4.6 percent to C$20.52.
 Research In Motion RIM.TO fell 3.4 percent to C$22.78, a
day after unveiling a souped-up operating software for its
BlackBerry smartphone and PlayBook tablet. [ID:nN1E79H0ZF]
 ($1=$1.01 Canadian)
 (Editing by Jeffrey Hodgson)