CANADA STOCKS-TSX drops on US data, persisting European fear

Tue Nov 22, 2011 12:05pm EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

 * TSX down 38.12 pts, or 0.3 pct, at 11,746.60
 * Rising gold price lifts materials sector
 * Weak U.S. GDP data weighs on stocks
 (Adds details and analyst's comments)
 By Jon Cook
 TORONTO, Nov 22 (Reuters) - Toronto's main stock index was
lower on Tuesday as resource-related issues were hurt by
unexpectedly weak U.S. third-quarter economic growth data and
persisting fears about a slowdown in Europe.
 Nearly all of the Toronto index's 10 main sectors were
lower with energy stocks the biggest drag, falling 1 percent.
Oil and gas shares have been especially sensitive in recent
sessions to shifting expectations for global economic growth.
 Suncor Energy SU.TO led the sector's declines, dropping
1.7 percent to C$30.41.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE was down 38.12 points, or 0.3 percent, at 11,746.60,
after opening slightly higher at 11,784.72.
  U.S. gross domestic product data showed the economy grew
at a 2 percent annual rate in the last quarter, down from a
previous estimate of 2.5 percent. [ID:nCAT005556]
 Also dragging on stocks was a persistently tenuous European
debt picture, as rising bond yields for Italy, Spain, France
and Belgium added to investor concerns that the euro zone is
headed into a recession. [MKTS/GLOB]
 "There's more contagion going on for all the equities
markets," said Douglas Davis, chief executive at Davis-Rea.
 Materials, the TSX's only positive sector, was helped by
gold prices, which gained more than 1 percent after hitting a
four-week low of $1,665.88 on Monday and falling nearly 5
percent over the last two weeks. [GOL/]
 Goldcorp Inc G.TO, rising 0.6 percent to C$51.78, and
Barrick Gold ABX.TO, up 1.2 percent at C$50.47, led gains.
 "Gold took a pretty good hit yesterday so we're getting
some rebound (today)," Davis said.
 ($1=$1.04 Canadian)
 (Editing by Peter Galloway)