CANADA STOCKS-TSX down sharply as consumer data disappoints

Tue Feb 23, 2010 10:53am EST
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* TSX falls 1.07 percent to 11,510.24

* Disappointing U.S. home prices, consumer confidence data

* Resources, banks key decliners (Adds details)

By Ka Yan Ng

TORONTO, Feb 23 (Reuters) - Toronto's main stock index accelerated its decline on Tuesday morning after the U.S. consumer confidence index fell sharply, deepening concern about the strength of the economic recovery.

U.S. consumer confidence fell to a 10-month low in February, adding to early skittishness about the economy when data showed U.S. home prices unexpectedly dipped in December. [ID:nN23248077] [ID:nN2375237]

Softening commodity prices pressured the materials and oil and gas groups, leading both sectors down sharply as oil broke a five-day rally to drop below $79 a barrel, while gold also lost ground. [O/R] [GOL/]

Top heavyweight decliners included Royal Bank of Canada (RY.TO: Quote), down 1.3 percent at C$55.86, while Suncor Energy (SU.TO: Quote) fell 1.6 percent to C$31.05. Cenovus Energy (CVE.TO: Quote) tumbled 3.75 percent to C$25.70.

"U.S. consumer confidence caught the Street off guard," said Francis Campeau, a broker at MF Global Canada, in Montreal, noting that the German Ifo institute's business sentiment index for February also came in lower than expected. [ID:nLDE61M0UN]   Continued...