CANADA STOCKS-TSX sinks as global sentiment, China drags on commodities

Wed Aug 12, 2015 11:40am EDT
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(Updates throughout with market reaction, analyst comment, new details)

* TSX down 214.66 points, or 1.49 percent, to 14,200.01

* Nine of the TSX's 10 main groups fell

By Solarina Ho

TORONTO, Aug 12 (Reuters) - Canada's main stock index dropped almost 1.5 percent on Wednesday, tracking markets around the world hit by the latest move from China that allowed the yuan to weaken further.

Crude oil prices were steady following Tuesday's rout but still flirted with multi-year lows while base metals sank to six-year lows on worries that demand from China, the world's top metals buyer, would wane.

The resource-heavy Toronto stocks have been hit hard by negative global sentiment that has battered commodity prices.

"I don't attribute it as much as other people do only to the Chinese trying to reduce the value of their currency against the U.S. dollar," said Subodh Kumar, chief investment strategist at Subodh Kumar & Associates.

"World economic growth has been slowing and markets have been ignoring that and now they're catching up with reality."   Continued...