CANADA STOCKS-TSX down as Europe recession fears weigh

Mon Nov 14, 2011 11:39am EST
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   * TSX down 22.93 pts, or 0.2 pct, to 12,253.92
 * Italy, Greece debt issues weigh
 * EU economic data sparks recession fears
 * Materials drag, financials up
 (Adds details, analyst's comments)
 By Jon Cook
 TORONTO, Nov 14 (Reuters) - Toronto's main stock index was
down slightly in choppy trade on Monday as fears that Europe
would fall back into recession weakened commodity prices and
halted momentum from Friday's gains.
 Industrial production in the European Union's 17-country
bloc fell 2 percent in September from August, overshadowing
hopes that new leaders in Italy and Greece would prevent their
economies from collapsing and avoid financial meltdown.
 "We're a long long way from any sort of resolution there,"
said Michael Sprung, president of Sprung & Co Investment
Counsel. "This week, we're likely to see very reactionary
markets, very volatile."
 Fears that Italy would not be unable to repay its near 2
trillion euro debt ($2.7 trillion) resumed after a weak sale of
Italian five-year bonds and after its 10-year bond yields rose
closer to the 7-percent level, which had triggered previous
euro zone bailouts for Ireland, Portugal and Greece.
 At 11:30 a.m. (1430 GMT), The Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down 22.93 points, or 0.2
percent, at 12,253.92 after briefly touching a session high of
 Half of the TSX's 10 main sectors were lower, led by the
heavily weighted materials sector, which fell 0.5 percent as
gold and commodity prices dipped. [GOL/] [COM/]
 Barrick Gold Corp (ABX.TO: Quote) was the sector's biggest drag,
falling 0.8 percent to C$53.27.
 Energy issues fell 0.5 percent as oil prices were hit by
the EU's slowdown in production. [O/R]
 Canadian Natural Resources Inc  (CNQ.TO: Quote) was the biggest
laggard, dropping 0.9 percent to C$37.34.
 Gains from the financial sector, up 0.4 percent, helped
offset some losses, as Canadian banks have minimal exposure to
European debt concerns.
 Royal Bank of Canada (RY.TO: Quote) led the sector higher, rising
0.8 percent to C$46.01.
 (Editing by Rob Wilson)