May 11, 2012 / 8:59 PM / 7 years ago

CANADA STOCKS-TSX resumes losing streak on China, Europe

* TSX ends down 41.50 pts, or 0.35 pct, at 11,694.67
    * Falls 1.5 pct for the week; down 4.5 pct in May
    * Materials, energy shares lead losses
    * Euro zone fears, China data weigh on shares
    * Strong U.S., Canada data pare losses

    By Jon Cook	
    TORONTO, May 11 (Reuters) - Toronto's main stock index fell
for the seventh time in eight sessions o n F riday as resource
shares slid on a witches' brew of Greek turmoil, slowdown fears
in China and shock trading losses at JPMorgan Chase that offset
strong North American data.	
    After a brief period in positive territory on Thursday,
Canadian stocks resumed their May sell-off. Seven of the index's
10 main sectors finished in the red, led by the heavyweight
materials and energy groups, which both fell more than 1
    "We're getting positive data in North America concurrent
with weaker data out of China, which has really been the
linchpin to the global growth story," said Craig Fehr, Canadian
market strategist at Edward Jones in St. Louis.	
    Chinese industrial output expanded in April at its slowest
annual pace in nearly three years. When paired with poor trade
figures from Thursday, the data suggest China's economy
continues to slow after a weak first-quarter performance.
     Gold miners fell along with the price of gold, which had
its biggest weekly decline this year. Barrick Gold
, the world's largest gold producer, slid 1.9 percent to
C$37.09. Canada's second largest gold firm, Goldcorp Inc,
dropped 1.5 percent to C$34.90.	
     Osisko Mining Corp sank nearly 13 percent to
C$7.40 after the miner announced on Friday that a fire at its
Canadian Malartic gold mine had forced it to shut down
operations at its only operating mine. 	
    Oil and gas losses were led by top oil producer Suncor
Energy, which sank 1.9 percent at C$28.75. Talisman
Energy was off 3.7 percent at C$10.86 and Encana Corp
 slipped 2.3 percent to C$21.24.	
    North American data helped offset some losses. Canada
reported a surge in April jobs and U.S. consumer sentiment rose
to its highest level in more than four years in early May.
    However, markets were unimpressed by those numbers.	
    "The economy in Canada and in the U.S. isn't growing fast
enough for investors to look past tepid (China) data," said
    The Toronto Stock Exchange's S&P/TSX composite index
 closed down 41.50 points, or 0.35 percent, at
11,694.67. It was down 1.5 percent for the week and has fallen
4.4 percent in May.	
    Financial stocks finished the week on a positive, up 0.4
percent, despite news that JPMorgan Chase & Co, the
biggest U.S. bank by assets, suffered a trading loss of at least
$2 billion from a failed hedging strategy.  	
    The sector's most influential gainers included top insurers
Manulife Financial, up 2.4 percent to C$12.36, and Sun
Life Financial, which jumped 3.3 percent to C$23.30.
Toronto-Dominion Bank also rose 0.4 percent to C$80.51.	
    Canadian banks were largely unaffected by news on Friday
Greek Socialist party leader Evangelos Venizelos was unable to
form a national unity government after holding last-ditch talks
with rivals, which could doom a painfully constructed bailout
    "The European situation is just a total mess," said John
Kinsey, portfolio manager at Caldwell Securities. "They're
getting new heads of state in France and maybe at some stage in
Greece and there are more elections to come this year so it's
just going to be a continual source of frustration."
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