June 9, 2010 / 8:50 PM / in 8 years

CANADA STOCKS-TSX ends lower as Fed report hits confidence

*TSX closes down 66.54 points at 11,450.64

*Financials, gold stocks weigh

*Energy, base-metals higher (Updates to close)

By Claire Sibonney

TORONTO, June 9 (Reuters) - Toronto’s main stock index closed lower on Wednesday as investor sentiment soured after the U.S. Federal Reserve’s Beige Book said economic growth was subdued in many U.S. districts.

The index’s economically sensitive financial sector fell 1.2 percent in reaction. Royal Bank of Canada RY.TO dropped 1.6 percent to C$52.03, and Toronto-Dominion Bank TD.TO, was down 1.2 percent at C$68.89.

Gold stocks ended more than 2 percent lower as the price of the precious metal retreated from the record high it set on Tuesday. [GOL/]

Barrick Gold Corp ABX.TO, the world’s largest producer, dropped 2.1 percent to C$44.55, while Goldcorp Inc G.TO also declined 2.1 percent to C$45.44.

“Firstly, it’s the same old pattern that we’ve seen for days on end now. But today there were a couple factors that led to most of the gains evaporating in the last hour of trading,” said Elvis Picardo, analyst and strategist at Global Securities in Vancouver.

Picardo was referring to the Fed’s Beige Book, a collection of information from across the United States, which described the pace of econonic growth in many regions as “modest”. [ID:nN09133847]

“The second factor was the euro gave up most of its gains during the day and broke below the critical level of $1.20. The market is totally transfixed on the euro’s fluctuations as a proxy for everything that is going wrong with the global economy.”

The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE closed 66.54 points, or 0.58 percent, lower at 11,450.64.

Earlier, the index rallied after unofficial data said China’s exports in the month rose about 50 percent from a year earlier, fueling a run to assets that would benefit from an economic rebound. [ID:nTOE65805R]

That boosted the prices of oil and copper, and in turn the energy and base-metal mining sectors, with Suncor Energy SU.TO jumping 1.7 percent to C$32.50, and First Quantum Minerals FM.TO soaring 2.7 percent to C$51.37. [O/R] [MET/L]

$1=$1.04 Canadian Reporting by Claire Sibonney; Editing by Peter Galloway

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