CANADA STOCKS-TSX tumbles as banks, materials retreat
* TSX finishes down 1.4 percent at 10,142.16
* Financials tumble 2.9 pct, lead TSX lower
* Bank earnings remain main market focus (Adds details, quotes)
By Jennifer Kwan
TORONTO, May 27 (Reuters) - Toronto's main stock index snapped a three-session winning streak on Wednesday, tumbling more than 1 percent as rising yields on U.S. government debt fanned fears of higher borrowing costs, which delay an economic recovery.
The heavily weighted financials sector dropped 2.9 percent, following a retreat by U.S. equity markets, as the surging bond yields fueled concerns that consumers and businesses could face higher charges for mortgages and other loans. [ID:nN27267395]
"When yields start rising, and rising sharply, basically what that means for the stock market is that all the companies and all the people that are spending money ... are looking at a higher cost of money. That is not good for everyone," said Levente Mady, a market strategist at Union Securities in Vancouver.
Typically, stocks and bonds move in opposite directions, as government debt is often bought as a safe haven when investors posses little appetite for riskier equities.
But the rising yields were enough to prompt a selloff in stocks, said Mady. Continued...