September 19, 2011 / 3:24 PM / 6 years ago

CANADA STOCKS-TSX hits one-week low on euro zone fears

   * Down 117.77 points, or 0.96 pct, at 12,145.94.
 * Eight of 10 main groups lower
 * Energy, base metals, banks all weigh  (Adds details, commentary)
 TORONTO, Sept 19 (Reuters) - Toronto’s main stock index touched one-week low on Monday, tumbling along with world markets, as investors worried about a Greek debt default and the fallout on the broader euro zone.
 Falling commodity prices pressured the resource-heavy TSX, as oil fell more than $2 per barrel and copper slid to its lowest level this year on fears of slowing global demand.
 Shares of oil and gas companies lost 2 percent, while base-metal miners sagged 5 percent, weighing on the broader materials sector. [O/R] [MET/L]
 First Quantum Minerals (FM.TO) dived 7.8 percent to C$19.52, while Canadian Natural Resources (CNQ.TO) sank 2.6 percent to C$33.31.
“We’re not as badly off as they are in the U.S., but  we’re still suffering,” said Fred Ketchen, director of equity trading at ScotiaMcLeod.
“If it weren’t for Greece, maybe things would look a whole lot better. But they’ve got to do something about this situation over there, and until they do its going to be a severe problem.”
 European officials ended a weekend meeting without agreeing on new ways to tackle the debt crisis. International lenders told Greece on Monday that it must shrink its public sector and improve tax collection to secure a vital 8 billion euro rescue payment next month.  [ID:nL5E7KJ1NN]
 Concerns that the crisis was worsening grew after Greece’s prime minister canceled a U.S. trip to chair an emergency cabinet meeting at home and German Chancellor Angela Merkel suffered a regional election loss. [ID:nL5E7KI0N6]  
 At 10:32 a.m. (1432 GMT) the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was down 117.77 points, or 0.96 percent, at 12,145.94. Earlier it fell as low as 12,117.77, the lowest point since Sept. 12. Eight of its 10 main groups were lower.
 Weakness in bank issues around the world pressured Toronto’s financial sector, which skidded 1 percent.  Royal Bank of Canada (RY.TO) fell 0.4 percent to C$46.13, while Bank of Montreal (BMO.TO) lost 1.1 percent to C$57.09
 Gold mining issues offered a bright spot, rising 0.6 percent, even as the price of gold fell against a strengthening U.S. dollar. [ID:nL5E7KJ156] Barrick Gold (ABX.TO) added 2 percent to C$53.58, while Goldcorp (G.TO) was up 1.3 percent at C$50.94. [GOL/]
 Investors took little comfort from expectations that the U.S. Federal Reserve would introduce new measures to stimulate the struggling U.S. economy later this week. [ID:nL5E7KJ0L2]
 “We will have to be patient and wait until tomorrow when the Federal Open Market Committee meets and speaks, and we’ll see what they come up with,” said Ketchen.
 “That’s going to determine where we go from there.”  (Reporting by Trish Nixon; editing by Rob Wilson )                 

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