CANADA STOCKS-U.S. shutdown pulls TSX lower, but golds gain
* TSX falls 30.46, or 0.24 percent, to 12,816.98 * Nine of 10 main index sectors decline * RBC has biggest negative influence on market By John Tilak TORONTO, Oct 2 (Reuters) - Canada's main stock index stumbled on Wednesday as a partial U.S. government shutdown shone a spotlight on the U.S. funding impasse, causing declines in almost every single major sector. A day after The Democratic-led U.S. Senate voted to kill Republicans' latest attempts to modify an emergency government funding bill, hopes that the debt crisis would be resolved soon began to dwindle. The uncertainty spurred a jump in gold, which is seen as a safe-haven asset, as investors placed bets on the commodity. Gold stocks gained about 3 percent. With the shutdown extending to a second day, the market began to be worried about what impact this could have on economic growth and monetary policy. "Reality appears to sinking in that the U.S. government is shut down," said Irwin Michael, portfolio manager at ABC Funds. "There are still a lot of risks in the marketplace and the economy." "Investors are very cautious and a little gun-shy, not wanting to do anything until they see a lot of these issues resolved," he said. The Toronto Stock Exchange's S&P/TSX composite index was down 30.46 points, or 0.24 percent, at 12,816.98. Michael expects the Canadian index to end the year higher as sentiment for commodities improves. While the Toronto market's losses were less severe than U.S. stocks, nine of the 10 main sectors on the index were in the red. The financial group fell 0.6 percent. Royal Bank of Canada , the country's biggest lender, dropped 0.8 percent to C$66.21 and had the biggest negative influence on the market. Toronto Dominion Bank gave back 0.5 percent to C$91.83. Energy shares shed 0.7 percent, with Suncor Energy Inc losing almost 1 percent to C$36.80 and Canadian Natural Resources Ltd falling 1.3 percent to C$32.40. But the rise in gold stocks pushed the materials sector, which includes mining shares, up 1.8 percent. Barrick Gold Corp climbed 3.5 percent to C$19.25, and Goldcorp Inc added 2.7 percent to C$26.76.
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