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

Thu Nov 24, 2011 4:58pm EST
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

   * TSX down 86.39 pts, or 0.75 pct, at 11,485.32
 * TSX marks lowest close since Oct. 5
 * Energy, financials lead retreat
 * Meeting of euro zone leaders fails to lift sentiment
 (Adds details, analyst comments)
 By Jon Cook
 TORONTO, Nov 24 (Reuters) - Toronto's main stock index fell
to a seven-week low on Thursday as resource-related issues slid
after a meeting of European leaders failed to stem market fears
about the euro zone debt crisis.
 Energy and materials were the main drags on the index, each
falling nearly 1 percent, as oil and gas producers and gold
miners were hit by fears of a slowdown in Europe.
 Enbridge Inc (ENB.TO: Quote) fell 2.8 percent to C$35.11 and
Barrick Gold (ABX.TO: Quote) slumped 1.4 percent to C$49.55 to lead
their respective sector's losses.
 "The simple answer to present market woes continues to be
Europe," said Elvis Picardo, strategist and vice-president of
research at Global Securities. "On the TSX, the downside is
being led by commodity groups."
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended the session down 86.39 points, or 0.75 percent,
at 11,485.32, its lowest close since Oct. 5.
 With U.S. markets closed for Thanksgiving and the absence
of any significant North American earnings news, 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]
 Apart from agreeing not to pressure the European Central
Bank to do more to rescue the region from its debt woes, the
meeting between French President Nicolas Sarkozy, German
Chancellor Angela Merkel and Italian Prime Minister Mario Monti
produced little for investors to rally behind.
 "This is the train wreck unfolding in slow motion," said
Paul Taylor, chief investment officer at BMO Harris.
 On Wednesday, a weak German 10-year bond auction pushed the
cost of borrowing for Europe's economic heavyweight above that
of the United States for the first time since October, helping
send global markets lower. [ID:nL5E7MN1K2]
 Despite having little exposure to European sovereign debt
holdings, Canadian financials were also caught in Thursday's
slide, dipping 0.7 percent.
 Bank of Montreal (BMO.TO: Quote) skidded 1.7 percent to C$55.25
while Bank of Nova Scotia (BNS.TO: Quote) fell 0.9 percent to
C$48.35.
 ($1=$1.05 Canadian)
 (Editing by Rob Wilson)