November 26, 2010 / 4:03 PM / in 7 years

CANADA STOCKS-EU debt worries help drag TSX lower

   * TSX down 40.85 points, or 0.32 pct, at 12,904.96
 * Six of the 10 main sectors lower
 * U.S. markets close at 1 p.m. EST
 By Solarina Ho
 TORONTO, Nov 26 (Reuters) - Toronto’s main stock index slid lower on Friday as investors worried that the euro zone debt crisis could worsen and commodity prices weakened amid geopolitical tensions and uncertainty for the economic outlook.
 The materials group, home to mining companies, was down 0.78 percent, partially weighed down by gold prices, which dropped more than 1 percent as risk-averse markets looked to the security of the U.S. dollar. [GOL/]
 Barrick Gold (ABX.TO) was by far the most influential decliner, falling 1.33 percent to C$51.30. Goldcorp (G.TO) was also down, slipping 1 percent to C$45.74.
 Diversified miner, Teck Resources TCKb.TO was off 1.27 percent at C$49.17.
 Oil prices, which dipped to $83 a barrel, helped pull energy issues down 0.29 percent. Suncor Energy (SU.TO) lead the group lower, falling 0.81 percent to C$34.27.
 At 10:16 a.m. (1516 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was down 40.85 points, or 0.32 percent, at 12,904.96. It rallied back from earlier session lows.
 “It’s coming back ... Most people don’t like to be short over a weekend so I suspect the market will probably continue to try and win back whatever it lost unless something untoward happens during the day,” said ABC Funds portfolio manager, Irwin Michael.
 Six of the 10 main sectors were in the red.
 “There’s concern that the Irish situation will spread to Spain and Portugal,” said Michael. “The second thing is there is increasing concern about the North-South Korea situation getting a little out of hand.”
 Portugal appeared to following the steps of Ireland, with speculation that it may have to seek a European bailout and on concerns Lisbon’s debt problems could drag down Spain. [ID:nLDE6AP08Y]
 The situation in the Korean peninsula remained tense days after North Korea shelled a South Korean island and ahead of military exercises in the region by South Korea and the United States . [ID:nL3E6MQ058]
 Markets were very thin on Friday morning, following Thursday’s U.S. Thanksgiving and with markets south of the border closing at 1 p.m. EST (1800 GMT).
 ($1=$1.02 Canadian)  (Reporting by Solarina Ho; editing by Rob Wilson)                                        

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