May 26, 2015 / 3:04 PM / 2 years ago

CANADA STOCKS-TSX retreats as greenback rally pressures commodity prices

3 Min Read

(Updates throughout with fresh details, analyst comment, market moves)

* TSX down 81.85 points, or 0.54 percent, to 15,105.55

* All of the TSX's 10 main groups decline

By Solarina Ho

TORONTO, May 26 (Reuters) - Canada's main stock index stumbled on Tuesday, with gold mining and energy stocks bruised by slumping gold and crude prices following a U.S. data-driven rally in the greenback.

After a lackluster first quarter, the U.S. economy was showing signs of getting back on track following better-than-expected durable goods orders. The more upbeat data could help push the Federal Reserve closer to deciding when it will resume hiking interest rates.

"Surprisingly, Canadian stocks ... have held in reasonably well," said Colin Cieszynski, Senior market analyst at CMC Markets Canada.

"Durable goods orders have turned back around, the U.S. economy is strengthening, the Fed raising interest rates is back on. Even if it's not June, it may not be December either."

The overall materials group, home to mining companies, retreated 1.5 percent as gold prices slid up to 2 percent on a stronger U.S. dollar.

Gold futures fell 1.5 percent to $1,186.8.

The most influential drags on the index included Barrick Gold Corp, which fell 4.1 percent to C$14.50, and Goldcorp Inc, which declined 2.1 percent to C$22.02.

Separately, Barrick said on Tuesday it was forging a strategic tie-up with China's Zijin Mining Group Co and agreed to sell them a stake in a mine in Papua New Guinea.

At 10:49 a.m. EDT (1449 GMT), the Toronto Stock Exchange's S&P/TSX composite index fell 81.85 points, or 0.54 percent, to 15,105.55. The index fared better than its U.S. equity counterparts, where Tuesday's losses were steeper.

All 10 of the index's main sectors were mired in negative territory.

Energy stocks were another heavy drag, easing 1 percent. U.S. crude prices fell 2.1 percent to $58.45, while Brent crude lost 2.2 percent to $64.07.

Suncor Energy Inc shares fell 1.2 percent to C$36.5, while Canadian Natural Resources slid 1.1 percent to C$37.99.

Financial stocks were off 0.7 percent, with Toronto-Dominion Bank down 1 percent at C$55.83. Investors are mostly awaiting Canadian bank earnings, which kick off on Wednesday.

Declining issues outnumbered advancing ones on the TSX for a 4.08-to-1 ratio on the downside.

Editing by Meredith Mazzilli

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