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* TSX down 125.95 points, or 1.11 percent, at 11,269.04
* Energy sector, down 1.4 percent, leads TSX lower
* U.S. economic data weighs on investor sentiment (Adds details, quote)
By Jennifer Kwan
TORONTO, Sept 30 (Reuters) - Toronto's main stock index retreated broadly on Wednesday morning, led lower by shares of oil and gas producers and miners, which dropped on weak commodity prices.
Heavyweight losers included oil companies Suncor Energy (SU.TO), which fell 2.2 percent to C$36.40, and EnCana (ECA.TO), which dropped 1.9 percent to C$61.44. Royal Bank of Canada (RY.TO) fell 0.9 percent to C$57.00.
The index rose at the open but quickly turned negative as a report showing a drop in business activity in the U.S. Midwest splashed cold water on investor optimism about economic recovery. [ID:nN3095624]
The Institute for Supply Management-Chicago business barometer fell to 46.1 in September from 50.0 in August. Economists had forecast the index at 52.0. A reading above 50 indicates expansion.
"The Chicago PMI was a key event. It was highly disappointing," said Francis Campeau, broker at MF Global Canada in Montreal.
The index's energy and materials sectors, down 1.4 percent and 1.3 percent, respectively, had led the Toronto market higher, but slipped into the red as oil and gold prices turned south. [O/R] [GOL/] [MET/L]
At 10:10 a.m. (1410 GMT), the S&P/TSX composite index .GSPTSE was down 125.95 points, or 1.11 percent, at 11,269.04, with all of its 10 main groups lower.
Campeau said another factor hurting investor sentiment was Canadian gross domestic product data that showed flat growth in July from June. [ID:nOTT003730] As well, investors could be realigning portfolios as the quarter comes to an end, he added.
"Stocks have outperformed the bond markets over the last few months so we might see a rebalancing," he said.
Despite Wednesday's fall, the Toronto market is up nearly 9 percent since the end of June.
$1=$1.08 Canadian Reporting by Jennifer Kwan; editing by Peter Galloway