CANADA STOCKS-TSX slips as China data hurts sentiment

Thu Apr 10, 2014 11:02am EDT
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* TSX falls 17.22 points, or 0.12 percent, to 14,418.36
    * Seven of the 10 main index sectors decline
    * Goldcorp drops after raising its takeover bid for Osisko

    By John Tilak
    TORONTO, April 10 (Reuters) - Canada's main stock index
dropped on Thursday as disappointing economic data from China
weighed on investor sentiment, offsetting a gain in the bullion
price that helped push up gold-mining shares.
    Data showing a significant fall in Chinese imports and
exports suggested that a slowdown in the world's second-largest
economy was taking hold. 
    In the United States, the number of Americans filing new
claims for unemployment benefits dropped last week to a near
seven-year low. 
    Global equity markets rallied on Wednesday after comments
from the Federal Reserve helped ease concerns that the U.S.
central bank might adopt an aggressive timetable for raising
interest rates.
     Markets want to see solid U.S. economic growth yet they
fear that if it is too robust it will prompt the Fed to raise
interest rates.
     "The markets are in a wait-and-see mode to see the
progression of economic data coming out of the United States,"  
   said Shailesh Kshatriya, associate director for client
investment strategies at Russell Investments Canada. 
    "It's amazing how financial markets continue to be
captivated by Fed speak," he said. "There's a fear out there
that the Fed will eventually tighten, and tightening is
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 17.22 points, or 0.12 percent, at 14,418.36.
It is up about 5.8 percent this year.
    "We've had a nice run to start the year, but the TSX will
likely be flatlined from this point forward," said Kshatriya,
who is cautious about the potential for more upside in gold and
oil prices. Oil and mining stocks are heavily weighted on the
benchmark Toronto index.
    Seven of the 10 main sectors on the index were in the red on
    Financials, the index's most heavily weighted sector, fell
0.5 percent. Toronto-Dominion Bank gave back 0.7 percent
to C$51.44, and Bank of Nova Scotia lost 0.6 percent to
    The gold-mining sector advanced 0.8 percent, helped by a 1.1
percent jump in the price of the precious metal. Barrick Gold
Corp climbed 1 percent to C$20.80.
    But Goldcorp Inc shed 2.1 percent to C$27.26, after
the miner raised its takeover offer for Osisko Mining Corp
 to about C$3.6 billion ($3.3 billion) in an attempt to
top a bid from Yamana Gold Inc. 
    Osisko shares gained 1.5 percent to C$7.66, while Yamana
shares were little changed.
    ($1=$1.09 Canadian)

 (Editing by Peter Galloway)