November 7, 2013 / 4:28 PM / 7 years ago

CANADA STOCKS-TSX slips after ECB rate cut, commodity weakness

* TSX falls 26.84 points, or 0.20 percent, to 13,353.57
    * Six of 10 main index sectors decline
    * Canadian Natural, Tim Hortons gain after results

    By John Tilak
    TORONTO, Nov 7 (Reuters) - Canada's main stock index
retreated on Thursday after the European Central Bank trimmed
interest rates, weighing on commodity prices and natural
resource stocks. 
    Investors also processed mixed data that showed U.S.
economic growth accelerating in the third quarter but consumer
spending expanding at the slowest rate in two years.
    The ECB, which cut interest rates to a new record low, said
it would prime banks with liquidity into 2015 to prevent the
euro zone's recovery from stalling as inflation tumbles.
    "The reduction of interest rates by the ECB surprised
everyone," said John Ing, president of Maison Placements Canada.
    "It reminds investors that we're still in very uncertain
territory," he said.
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 26.84 points, or 0.20 percent, at 13,353.57.
    Six of the 10 main sectors on the index were in the red.
    Shares of energy companies led the decline, falling more
than 1 percent, as oil prices dropped. 
    Suncor Energy Inc gave back 1.5 percent to C$36.13,
and Encana Corp dropped 2.1 percent to C$19.03.
    But the losses were somewhat capped by a 1.3 percent jump in
Canadian Natural Resources Ltd after the oil producer's
third-quarter profit more than tripled as a result of record
quarterly production and strong oil prices.
    Two of Canada's top retailers also posted results. 
    Tim Hortons Inc reported an 8 percent rise in
quarterly profit as same-store sales improved slightly in the
United States, pushing its shares up 0.4 percent to C$62.83.
[ID: nL3N0IS4EM] 
    Canadian Tire Corp Ltd recorded a
stronger-than-expected 11 percent rise in quarterly profit. The
stock was down slightly.
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