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.
[MKTS/GLOB]
 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: Quote), down 1.5 percent at C$52.71, and Barrick
Gold (ABX.TO: Quote), down 1.6 percent at C$51.82, led the sector's
losses.
 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.
[ID:nN1E7AG0BT]
 "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)