* TSX down 38.44 points at 11,466.30
* Energy, banks drag index lower
By Claire Sibonney
TORONTO, June 8 (Reuters) - Toronto’s main stock index fell on Tuesday after see-saw start as financial and energy shares weakened off.
Market watchers have been closely eyeing critical technical levels for the Standard & Poor’s 500 Index .SPX, which if crossed could spark further equity spelling and spill over into Canadian stocks.
“The S&P 500 is approaching a huge technical level around 1,040 so that will hinge on whether the market can find support approaching the trough seen in February and May,” said Fergal Smith, managing market strategist at Action Economics.
The S&P 500 eased 1 point, or 0.10 percent, to 1,049.47.
Smith also pointed to the rise in euro zone government bond yields over benchmark German debt as a gauge of risk aversion. Rising spreads indicate weaker investor confidence.
“EMU (European Monetary Union) spreads remained fairly elevated. Greece’s 10-year spread has pushed back above 600 basis points so some of the major issues facing the market are still there,” he said.
At 10:11 a.m. (1411 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was down 38.44 points, or 0.33 percent, at 11,466.30. Earlier the index opened in positive territory, helped in part by rallying gold shares on the back of record high prices. [GOL/]
Barrick Gold Corp (ABX.TO), the world’s largest producer, was up 1.2 percent at C$46.35, while Yamana Gold (YRI.TO) rose 1.7 percent to C$11.63. (Reporting by Claire Sibonney; Editing by Jeffrey Hodgson)