CANADA STOCKS-TSX down as banks, resource issues stall rally

Thu Dec 1, 2011 12:14pm EST
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 * TSX down 90.65 pts, or 0.7 pct, to 12,113.46
 * Financials, resources drag
 * China, Europe manufacturing data weighs
 (Adds details, analyst comments)
 By Jon Cook
 TORONTO, Dec 1 (Reuters) - Canadian stocks fell on Thursday
following three days of gains, as banks and resource issues
turned lower after weak global manufacturing data and on fears
that Europe's debt problems would persist.
 Despite better than expected earnings by two of Canada's
largest banks, financial stocks sagged more than 1 percent as
weak China and Europe manufacturing data renewed fears of a
global economic slowdown. [ID:nL5E7N118K]
 Bank of Nova Scotia BNS.TO led the sector's losses,
falling 2.7 percent to C$50.15. Toronto-Dominion Bank TD.TO
dropped 2.1 percent to C$71.97 and Canadian Imperial Bank of
Commerce CM.TO slumped 1.3 percent to C$71.99, even after
both lenders reported that their quarterly profits rose more
than 50 percent. [ID:nL1E7MU10C] [ID:nN1E7B0034]
 "You always run into some kind of profit taking after three
days (of gains) and especially the great day we had yesterday,"
said John Kinsey, portfolio manager at Caldwell Securities Ltd.
"It will be interesting in a new month to see if this
late-November rally continues."
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE was down 90.65 points, or 0.7 percent, to 12,113.46
at midday.
 On Wednesday the index had its biggest single-day gain
since March 2009, spiking more than 4 percent.
 Further weighing on financial stocks was a statement by the
International Monetary Fund on Thursday that it would likely
cut its global growth forecast after a marked slowdown in
economic activity because of the euro zone debt crisis.
 After jumping nearly 6 percent the previous session, the
heavily weighted materials sector was down 1 percent as base
metal miners were hit by a decline in copper prices on fears of
a drop in demand by China, the world's largest purchaser of
base metals. [MET/L]
 Barrick Gold ABX.TO, fell 1.4 percent to C$53.29,
Goldcorp G.TO dipped 1.8 percent to C$53.95, and First
Quantum Minerals FM.TO, was down 3.5 at C$19.88, leading the
sector lower.
 Energy stocks, which edged down 0.7 percent, were impacted
by a dip in U.S. crude as government data showed that jobless
benefit claims rose last week to their highest level since late
October, sparking worries of a demand shortage.  [O/R]
 Suncor Energy SU.TO was among the biggest laggards,
dropping 0.8 percent to C$30.47.
 In other earnings news, Lululemon Athletica Inc's shares
tumbled nearly 11 percent to C$45.32 in early trade after the
retailer announced its quarterly profit rose but sales of its
signature yoga wear missed analyst expectations.
 (Editing by Jeffrey Hodgson)