CANADA STOCKS-TSX falls as euro zone fears hit gold price

Thu Nov 17, 2011 10:58am EST
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 * TSX down 55.91 pts, or 0.5 pct, at 12,118.45
 * Gold miners fall as bullion hits one-week low
 * U.S. jobless, housing data limits losses
 (Adds details)
 TORONTO, Nov 17 (Reuters) - Toronto's main stock index was
lower on Thursday morning, but well off its 1 percent fall
shortly after the open, as gold-mining shares fell along with
bullion prices after weak European bond sales sparked fears of
a worsening euro-zone debt crisis.
 In sales on Thursday, 10-year Spanish bond yields
approached the precarious 7 percent mark, their highest level
since 1997. A French bond auction also saw high yields.
 The heavily weighted materials sector led the Toronto
index's losses, down 1.3 percent, mostly due to gold-mining
stocks, which fell 1.4 percent as bullion prices continued
their slide, hitting a one-week low. [GOL/]
 Goldcorp G.TO, down 1.5 percent at C$52.71, and Barrick
Gold ABX.TO, down 1.6 percent at C$51.82, led the sector's
 Solid U.S. economic data helped limit the index's losses.
U.S. claims for jobless benefits hit a seven-month low last
week, while permits for home construction rebounded strongly
last month, bolstering views the economy was gaining traction.
 "If we didn't have that outstanding problem in Europe we'd
actually see the (index rising)," said Robert Kavcic, economist
at BMO Capital Markets.
 At 10:25 a.m. (1525 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down 55.91 points, or 0.5
percent, at 12,118.45. Shortly after the open it fell as much
as 121.39 points, or 1 percent, to 12,052.25.
 ($1=$1.02 Canadian)
 (Editing by Peter Galloway)