CANADA STOCKS-TSX tumbles on global growth worries, German data

Tue Oct 7, 2014 5:12pm EDT
 
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(Adds details, comments from strategist; updates prices)
    * TSX down 166.67 points, or 1.13 percent, at 14,576.45
    * Nine of 10 main index sectors decline
    * Energy shares slip with oil price

    By John Tilak
    TORONTO, Oct 7 (Reuters) - Canada's main stock index dropped
on Tuesday as a sluggish global growth forecast and weak data
from Germany fueled a selloff in equities and oil prices.
    In turn, the decline in the price of oil pushed down the
energy sector, which had the biggest negative influence on the
market. The benchmark TSX is off about 7 percent since hitting a
record high last month.
    Investors digested data showing that German industrial
output plunged in August staging its steepest drop since the
height of the financial crisis. 
    Meanwhile, 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. 
    "(The data) does have an impact on the TSX because it's
levered to global growth," said Elvis Picardo, strategist and
vice president of research at Global Securities in Vancouver.
    "The bigger issue is whether this signals the end of the
bull market or if it is just seasonal jitters," he added. "This
is a much-needed tempering of global growth prospects and the
rampant bullishness we've seen in recent months."
    The Toronto Stock Exchange's S&P/TSX composite index
 unofficially ended down 166.67 points, or 1.13
percent, at 14,576.45. Nine of the 10 main sectors on the index
were in the red.
    Shares of energy producers dropped 1.9 percent, reflecting
lower oil prices. Suncor Energy Inc shed 2.6 percent to
C$38.53, and Talisman Energy Inc dropped 2.5 percent to
C$8.81.
    The materials sector, which includes mining stocks, weakened
as trading in commodity prices was choppy. Teck Resources Ltd
 declined 4.6 percent to C$18.92, and Barrick Gold Corp
 lost 3.8 percent to C$15.24.

 (Editing by James Dalgleish and Diane Craft)