CANADA STOCKS-TSX slumps to 8-month low on U.S. data, oil prices

Wed Oct 15, 2014 4:51pm EDT
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* TSX down 166.80 points, or 1.19 percent, at 13,869.88
    * All 10 main index sectors decline, banks drop
    * Energy shares follow U.S. crude oil price lower

 (Adds details, quotes, byline, updates prices)
    By John Tilak and Leah Schnurr
    TORONTO, Oct 15 (Reuters) - Canada's main stock index
dropped on Wednesday to its lowest level in eight months, as
sluggish U.S. economic data fed concerns about the global
economy and oil prices slid again.
    The benchmark TSX has fallen into official correction
territory, down more than 11 percent since hitting a record high
last month. The index has racked up a decline of more than 1
percent in the last five of six sessions.
    The declines on Bay Street were part of a global equity rout
as investors fretted about a drop in Chinese inflation and the
global economy. Markets were also trying to gauge when the
Federal Reserve will start to raise U.S. interest rates.
    News that a second Texas nurse has contracted Ebola added to
the overall risk aversion and investors fled to safer assets.
    A fall in U.S. retail sales in September and a drop in U.S.
producer prices raised questions about the strength of the
recovery in the world's biggest economy. 
    "The worry is that the only bright spot, which is the U.S.
economy, could be dragged down," said Marcus Xu, portfolio
manager at M.Y. Capital Management Corp in Vancouver.
    The Toronto Stock Exchange's S&P/TSX composite index
 ended down 166.80 points, or 1.19 percent, at
13,869.88. All of the 10 main sectors on the index were in the
    The financial sector, which had been a market leader to the
upside, was one of the worst hit, down 2.5 percent. A handful of
banks were the biggest drags on the index, including Toronto
Dominion Bank, which lost 2.6 percent to C$51.24, while
Royal Bank of Canada dropped 1.9 percent to C$77.26.
    "What's the one engine of growth you have out there? It's
the United States, and now some people are starting to doubt
that," said Ian Nakamoto, director of research at MacDougall,
MacDougall & MacTier.
    "Investors are nervous," he added. "It's easy to get on
board when you see a trend. The trend recently has been
    Worries about sluggish demand for oil have sent the price of
the commodity into a tailspin in the past three months. The
price of U.S. crude oil settled down 6 cents at $81.78 a
    Shares of energy producers lost 0.6 percent, with Talisman
Energy Inc down 3.2 percent to C$7.23.

 (Editing by David Gregorio)