CANADA STOCKS-TSX slides as U.S. data fuels growth fears

Wed Jun 23, 2010 10:48am EDT
 
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   * TSX down 36.12 points, or 0.3 percent, at 11,761.82
 * Resources, banks lead market lower
 * Soft U.S. economic data hits equity markets
 (Adds details, quotes)
 By Jennifer Kwan
 TORONTO, June 23 (Reuters) - Toronto's main stock index
fell on Wednesday morning, under pressure from weak commodity
prices and soft U.S. economic data that added to concerns about
the pace of recovery.
 A range of heavyweight names topped the list of influential
decliners, including Talisman Energy TLM.TO, down 0.2 percent
at C$17.29, Teck Resources (TCKb.TO: Quote), down 1.8 percent at
C$34.93, and Royal Bank of Canada (RY.TO: Quote), off 1.8 percent at
C$53.43.
 The slide was fueled by data that showed U.S. sales of new
single-family homes fell more than expected in May to a record
low, as the benefits from a popular tax credit faded, adding to
worries of a slowing economic recovery. [ID:nN23208380]
 Those figures follow a string of recent U.S. economic
reports that came in below expectations, including Tuesday's
existing home sales data, market observers say.
 "It's evident with these weaker numbers that people are a
little bit more concerned about the growth outlook," said Gavin
Graham, global strategist at Excel Funds Management Inc.
 "Canada is regarded as a leverage play on global growth. If
you are comfortable about growth then you look at Canada and go
well we're the resources with strong exposure to emerging
economies, and because of the resources it's going to do well,"
he added.
 "If you go, oh my gosh, what about Europe and what about
the U.S. consumer, it doesn't look that good -- and copper,
gold, oil are down. The loonie is down. Canada is down."
 At 10:27 a.m. (1427 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down 36.12 points, or 0.3
percent, at 11,761.82, with half of its 10 main groups lower.
 Analysts said another potentially market-moving event on
Wednesday will be a statement by the Federal Reserve.
 The U.S. central bank is expected to reassure investors it
won't move too soon on its tightening policy, but it is also
seen repeating a vow to keep interest rates exceptionally low
for an extended period.
 The Fed may also acknowledge a slight slowdown in the pace
of the U.S. economic recovery, according to economists.
[ID:nN22150078]
 ($1=$1.04 Canadian)
 (Reporting by Jennifer Kwan; editing by Rob Wilson)