CANADA STOCKS-TSX slips as global growth concerns drag

Tue Oct 7, 2014 10:29am EDT
 
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* TSX down 31.13 points, or 0.21 percent, at 14,711.99
    * Seven of 10 main index sectors decline
    * Energy shares slip with oil price

    By John Tilak
    TORONTO, Oct 7 (Reuters) - Canada's main stock index edged
lower on Tuesday as a sluggish global growth forecast and weak
data from Germany raised concerns about the state of the
economic recovery.
    Further, a drop in the price of oil helped pull down shares
of energy producers. The benchmark TSX is down about 6 percent
since hitting a record high last month.
    Investors digested data showing that German industrial
output plunged in August at its steepest rate since the height
of the financial crisis. 
    The International Monetary Fund cut its global economic
growth forecasts for the third time this year, warning of weaker
growth in core euro zone countries, Japan and big emerging
markets such as Brazil. 
    "Those numbers might be capturing, with varying degrees of
precision, the slower growth, lower-return environment in the
United States and now the rest of the world," said Stephen Wood,
chief market strategist, North America, at Russell Investments.
    "Is faster and more rocky preferred to slow and steadier?"
he said. "To the extent that the pattern of growth is a little
bit more stable, that would allow markets a longer runway to
price."
    "We prefer bonds to cash, but we prefer equities to bonds in
this environment," he added.
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 31.13 points, or 0.21 percent, at 14,711.99.
Seven of the 10 main sectors on the index were in the red.
    Shares of energy producers dropped 0.5 percent, reflecting
lower oil prices. Suncor Energy Inc shed 0.3 percent to
C$39.44, and Talisman Energy Inc dropped 0.9 percent to
C$8.96.
    The materials sector, which includes mining stocks, weakened
as trading in commodity prices was choppy. Teck Resources Ltd
 declined 1.5 percent to C$19.55, and Barrick Gold Corp
 lost 2.6 percent to C$15.43.

 (Editing by James Dalgleish)