October 9, 2012 / 8:38 PM / 6 years ago

CANADA STOCKS-TSX ends at 2-week low after IMF warning

* TSX ends down 145.42 points, or 1.2 pct, at 12,273.57
    * All 10 sectors lower in broad decline

    By Claire Sibonney
    TORONTO, Oct 9 (Reuters) - Canada's main stock index marked
its lowest close in almost two weeks on Tuesday, tracking a
sell-off in world equity markets after the IMF said the global
economic slowdown is worsening.
    All 10 of the index's sectors fell on a wave of negative
signals, including the stark warning from the IMF as it cut its
growth forecasts for the second time since April and warned U.S.
and European policymakers that failure to fix their economic
ills would prolong the slump. 
    Commodity and financial shares were among the hardest hit.
Barrick Gold sank 3.7 percent to C$39.60, Goldcorp Inc
 lost 3.9 percent to C$43.45 and Manulife Financial 
 fell 3 percent to C$11.95.
    "I think the IMF (report) is what people are paying
attention to. But it struck me as being a little bit late ...
current economic news coming out of the U.S. has been a little
bit better rather than worse," said Ian Nakamoto, director of
research at MacDougall, MacDougall & MacTier.
    Other news from Europe also kept investors on edge as
uncertainty about when Spain will apply for a bailout worried
markets, as did concerns about Greece's debt load.
    The Toronto Stock Exchange's S&P/TSX composite index
 ended down 145.42 points, or 1.17 percent, at
12,273.57. It was the weakest closing level since Sept. 26.
    Looking ahead to Wednesday, investors are expected to take
their cue from U.S. aluminum producer Alcoa Inc, which
kicked off earnings season with a third-quarter loss after
Tuesday's market close.  
    Analysts forecast third-quarter earnings of S&P 500 
companies will drop 2.3 percent from the year-ago quarter,
according to Thomson Reuters data, which would be the first drop
in U.S. quarterly earnings in three years.
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