CANADA STOCKS-TSX yanked lower by bank and auto worries
* TSX tumbles 224.84 points to 8,596.22
* Auto and bank concerns rattle sentiment
* Weaker oil price also weighs
* Fall erases most of last week's gain (Adds details, comments and official numbers)
By Frank Pingue
TORONTO, March 30 (Reuters) - Toronto's main stock index closed 3 percent lower on Monday and erased much of last week's gains as troubles in the North American auto sector and the European banking industry rattled investor sentiment.
Canadian banks and insurers headlined the index's latest skid as news of bank rescues in Europe unsettled investors who had bid up financial stocks in recent weeks.
Shares of insurer Manulife Financial MFC.TO, the biggest drag on the overall index, dropped 8.5 percent to close at C$13.72, while Royal Bank of Canada (RY.TO: Quote) followed with a drop of 3.2 percent to C$35.80.
The drop in shares of Canadian banks and insurers followed similar falls by financial stocks overseas on news that Spain was forced into its first bank rescue since the global financial crisis began. Britain and Germany also shored up lenders. [nLU302379] Continued...