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

Mon Sep 19, 2011 11:23am EDT
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   * 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 )