June 4, 2010 / 7:45 PM / 9 years ago

CANADA STOCKS-TSX extends slide on U.S. jobs, Europe fears

* TSX down 229.73 points at 11,582.14

* All 10 sectors down sharply (Updates prices, adds details, quotes)

By Claire Sibonney

TORONTO, June 4 (Reuters) - Toronto’s main stock index tumbled on Friday, following disappointing May jobs figures in the United States and worries that Hungary may be the latest casualty of Europe’s sovereign debt crisis.

The weak U.S. jobs report coupled with a Hungarian official warning of a “Greek-style” debt crisis also dragged the euro, which fell below $1.20 for the first time in more than four years. [MKTS/GLOB]

Global stocks and other riskier assets such as commodities were knocked lower, hitting Canada’s resource-loaded index hard. [O/R] [MET/L]

Teck Resources TCKb.TO plunged 6.8 percent to C$32.74 and Suncor Energy (SU.TO) dropped 2.5 percent to C$32.44.

Financials were also beaten down with Royal Bank of Canada (RY.TO) off 1.8 percent at C$53.79 and Bank of Nova Scotia (BNS.TO) slipping 3.4 percent lower to C$49.46.

“It’s been a tough week and it’s going to finish tough, too,” said Bruce Latimer, trader at Dundee Securities.

“Investors don’t like the job reports that came out and they just don’t like the general uncertainty in the market.”

Hiring by U.S. private employers slowed sharply in May, a setback for the economy’s recovery, even as temporary census hiring pushed overall payrolls growth to its fastest pace in 10 years. [ID:nN03243431]

At 3:27 p.m. (1927 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was down 229.73 points, or 1.9 percent, at 11,582.14 with all 10 of its main groups lower.

Global growth concerns overshadowed a rosy domestic employment report that showed Canada added an impressive 24,700 jobs in May, almost double the expected number, as the economy posted its fifth consecutive monthly jobs gain. The unemployment rate remained at 8.1 percent, matching market forecasts. [ID:nN04118067] (Reporting by Claire Sibonney; editing by Jeffrey Hodgson)

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