CANADA STOCKS-TSX tumbles as commodity prices retreat
* TSX ends down 117.43 points at 12,567.25
* Eight of 10 sectors finish lower (Adds details on banks)
By Claire Sibonney
TORONTO, Oct 27 (Reuters) - Toronto's main stock index fell broadly on Wednesday as worries that market expectations of new U.S. economic stimulus measures were overblown boosted the U.S. dollar and hurt commodity prices.
With the U.S. mid-term elections and a U.S. Federal Reserve meeting on tap for next week, traders also moved to guard against what could be an erratic period in equities on both sides of the border.
Prices for oil, gold and base metals all slipped as a rising greenback made commodities more expensive for holders of other currencies, pushing key resource sectors down.
Both energy and materials skidded 1.1 percent.
Among the biggest decliners were Suncor Energy (SU.TO: Quote), down 2.4 percent at C$32.55, Barrick Gold Corp (ABX.TO: Quote), down 1.8 percent at C$46.94, and Teck Resources (TCKb.TO: Quote), which fell 1.4 percent to C$45.31.
Diversified miner Teck said late Tuesday its third-quarter operating profit rose sharply, but its earnings fell short of market expectations partly due to higher costs.[ID:nN26118379]
Investors had been pricing in large scale U.S. Treasury bond purchases by the Fed, lifting equities, commodities and emerging market assets in recent weeks, while the greenback came under pressure against other currencies.
"The market was priced for perfection and perhaps that's not what we're going to see next week," said Philip Petursson, director of the portfolio advisory at MFC Global Investment Management.
"As such, it's better to just take money out of what's been a very strong rally, wait it out for a week and then see where we end up."
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed down 117.43 points, or 0.93 percent, at 12,567.25. Eight of the 10 main sectors were weaker, including economically sensitive financials, off 0.7 percent.
Royal Bank of Canada (RY.TO: Quote) shed 1.3 percent to C$54.92 and Toronto-Dominion Bank (TD.TO: Quote) was 0.9 percent lower at C$73.55.
Financials were also pressured by remarks from Canada's banking watchdog that lenders should take a cautious approach to raising dividends or making big acquisitions in a still-uncertain regulatory environment. [ID:nN27251914]
In individual company action, Potash Corp (POT.TO: Quote) reversed earlier losses to gain 1.3 percent to C$151.80. The fertilizer giant filed an amended complaint on Tuesday in its lawsuit against hostile suitor BHP Billiton (BHP.AX: Quote). [ID:nN26177952]
Research In Motion RIM.TO jumped 2.2 percent to C$57.39, after it introduced its new BlackBerry Bold 9780 smartphone. [ID:nWNAB7342]
Canadian Pacific Railway (CP.TO: Quote) dropped 2.1 percent to C$65.64, despite reporting a 28 percent jump in quarterly operating profit, as investors worried that growth would slow. [ID:nN26150309]
Corus Entertainment (CJRb.TO: Quote) added 2.5 percent to C$22.08, after the media company reported a 64 percent drop in fourth-quarter profit, hurt by higher expenses, but raised its dividend 25 percent. [ID:nN27141854]
TMX Group (X.TO: Quote) gained 1.9 percent at C$34.18, after the Toronto Stock Exchange operator boosted its dividend for the first time since 2007 and reported a 22 percent rise in quarterly profit as a move to diversify began to bear fruit. [ID:nN26158365]
($1=$1.03 Canadian) (Reporting by Claire Sibonney; editing by Rob Wilson)
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