CANADA STOCKS-TSX hits seven-week low on euro zone fears

Thu Nov 24, 2011 11:06am EST
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   * TSX down 54.64 pts, or 0.5 percent, at 11,517.07
 * TSX at lowest level since Oct. 6
 * Materials, financials lead retreat
 * Euro zone leaders discuss crisis measures
 (Adds details, analyst comments)
 By Jon Cook
 TORONTO, Nov 24 (Reuters) - Toronto's main stock index hit
a seven-week low on Thursday morning, as materials and
financial issues retreated in response to euro zone debt fears,
sparked by rising German government bond yields.
 Wednesday's German bond auction pushed the cost of
borrowing over 10 years for the European heavyweight above
those of the United States for the first time since October.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE was down 54.64 points, or 0.5 percent, at 11,517.07,
after rising slightly at the open. The index was at its lowest
level since Oct. 6, after plunging nearly 2 percent the
previous session.
 Heavily weighted materials issues led the decline as gold
miners slumped on concerns of a slowdown in Europe. Barrick
Gold ABX.TO was the sector's biggest drag, dropping 1.4
percent to C$49.55.
 With U.S. markets closed for Thanksgiving and the absence
of any significant North American earnings, investors were
focused on the outcome of a meeting between the leaders of
Germany, France and Italy - the euro zone's top three
economies. [ID:nL5E7MO037]
 "It's been termed a crisis meeting," said Paul Taylor,
chief investment officer at BMO Harris. "This is the train
wreck unfolding in slow motion."
 Despite having little exposure to European sovereign debt
holdings, Canadian financials were also caught in the slide,
dipping 0.3 percent.
 Canadian Imperial Bank of Commerce CM.TO skidded 1.5
percent to C$68.56 while Bank of Nova Scotia BNS.TO fell 0.7
percent to C$48.47.
 ($1=$1.05 Canadian)
 (Editing by Rob Wilson)