February 5, 2010 / 4:02 PM / in 8 years

CANADA STOCKS-TSX falls on economic worries, weak resources

* TSX skids 0.6 percent to 11,061.85

* Mixed U.S. jobs data, European debt worries weigh

* Canada adds 43,000 jobs in Jan, unemployment rate dips

* Bombardier, Brookfield among key advancers (Adds details)

By Ka Yan Ng

TORONTO, Feb 5 (Reuters) - Toronto’s main stock index fell on Friday to its lowest level since early November, as concern over the financial well-being of some European countries worried investors.

Euro zone sovereign debt problems continued to hang over the market, putting a stranglehold on risk appetite, despite a drop in Canada’s unemployment rate and a surprising 43,000 jobs added to the recovering economy. [ID:nN05253705]

But a mixed U.S. jobs report kept pressure on already lower global stock markets. U.S. employers unexpectedly cut 20,000 jobs in January, though the unemployment rate fell to a five-month low of 9.7 percent, according the U.S. Labor Department. [ID:nN04115255]

Banks, which are often a play on broader global economic concerns, were among some of the weakest of the heavyweight decliners, despite the positive Canadian jobs data.

Royal Bank of Canada RY.TO led all influential decliners, down 1.1 percent at C$52.43, while Bank of Nova Scotia BNS.TO was off 0.74 percent at C$44.51.

“It looks like more of the same. People seem to be awfully worried about Portugal and Greece in particular, Italy and Spain after that,” said John Kinsey, portfolio manager at Caldwell Securities Ltd. “The financials are all down ... that’s the main cause of our demise so far.”

At 10:35 a.m. (1535 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was down 66.91 points, or 0.6 percent, at 11,061.85, after a choppy open that eventually took the index down more than 1 percent to its lowest level since Nov. 3.

The index’s decline follows on the heels of Thursday’s sharp 2.3 percent drop, its steepest percentage fall since early October.

The energy and materials groups, which make up nearly 50 percent of the index’s weighting, were sharply lower as the price of gold and oil fell. [GOL/] [O/R]

Canadian Natural Resources CNQ.TO fell 2 percent to C$68.70, while Teck Resources TCKb.TO fell 3.3 percent to C$32.79.

On the upside, Bombardier BBDb.TO was the top gainer, up 2.5 percent to C$5.42 as the world’s No. 3 civil aircraft manufacturer reported better than expected aircraft deliveries in the fourth quarter. [ID:nN05199939]

Brookfield Properties BPO.TO was also among the key advancers, rising 3.7 percent to C$13.67 after reporting a smaller than expected fall in funds from operations and saying it sees 2010 FFO above market estimates. [ID:nN04224612]

$1=$1.07 Canadian Reporting by Ka Yan Ng; editing by Rob Wilson

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