* TSX drops 0.42 percent to 13,568.16
* Seven sectors lower (Adds details)
TORONTO, May 20 (Reuters) - Toronto’s main stock index was broadly lower on Friday morning as weakness in the price of oil, disappointing Canadian economic data, and a drop on U.S. stock markets weighed on sentiment.
Energy shares were down 0.3 percent, tracking a turn lower in the price of oil as the U.S. dollar jumped. The greenback, which often moves inversely to commodity prices because oil and other raw materials are priced in the U.S. currency, rose around 0.6 percent against a basket of currencies.
Suncor Energy (SU.TO) fell 0.8 percent to C$39.34, while Talisman Energy TLM.TO lost 1.6 percent to C$19.87.
Nexen Inc NXY.TO was down 0.41 percent to C$22 after the independent oil explorer said on Thursday it expects its annual production to be near the bottom of its target range due to recent outages in the North Sea and Yemen. [ID:nN19292143]
Prices for gold and copper rose but that didn’t have much impact on the index’s weighty materials group, which fell 1.1 percent. In the group, miner Barrick Gold (ABX.TO) was down 1.1 percent at C$43.73, while fertilizer producer Potash Corp (POT.TO) dropped 1.4 percent to C$51.19.
“Oil is taking a bigger hit than the rest of them,” said Andrew Pyle, wealth advisor at ScotiaMcLeod. “There was definintely a move this morning in the (U.S.) dollar and I think that’s what’s really taken the wind out of oil.”
At 10:27 a.m. (1427 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was down 56.93 points, or 0.42 percent, at 13,568.16, after rising a touch at the open. Seven of 10 index sectors were lower.
Canadian retail sales for March and inflation data for April, both released on Friday, came in below forecast.
Also worrying the Toronto market, U.S. stocks fell on revived concerns about the impact of the euro zone’s debt problems. The S&P 500 was below a key technical level. Clothing retailer Gap Inc slashed its full-year profit outlook, which also weighed on sentiment. [.N]
($1=$0.97 Canadian) (Reporting by Ka Yan Ng; editing by Peter Galloway)