October 14, 2010 / 9:00 PM / in 7 years

CANADA STOCKS-U.S. data knocks TSX off its 2-year high

 *TSX down 53.62 points at 12,619.69
 *All 10 sectors weaker
 (Recasts, adds comment, closing stock prices)
 By Claire Sibonney and Pav Jordan
 TORONTO, Oct 14 (Reuters) - Toronto's main stock index
closed lower on Thursday, retreating from the two-year high it
hit a day earlier as investors took their cue from weak U.S.
economic data and took profits.
 All 10 of the index's main sectors were down, including the
three heavyweights: energy, down 0.85 percent, materials, down
0.29 percent, and financials, off 0.2 percent.
  "I think that maybe the market at the present time seems
to have run out of a bit of steam, and after the run that we
have had, I can understand that," said Fred Ketchen, director
of equity trading at ScotiaMcLeod, adding that the soft U.S.
data was also weighing on investors' minds.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed 53.62 points, or 0.42 percent, lower at
12,619.69, after hitting its highest level in two years on
 Among the biggest decliners were Suncor Energy SU.TO,
which fell 1.67 percent to C$34.72, and Barrick Gold Corp
ABX.TO, which dropped 0.65 percent to C$49.09.
 Data showed new U.S. claims for jobless benefits rose
unexpectedly last week, hardening the view that the U.S.
Federal Reserve will pump more money into the economy in hopes
of boosting growth and lowering unemployment. [ID:nN14277059]
 Other data on Thursday showed record-high imports from
China helped widen the U.S. trade deficit in August, which may
drag on U.S. growth and increase international tensions over
trade and currency policy.
 "You've got stocks and commodities north and south of the
border that have done extremely well in a very short period of
time, so any one day's price movement is probably not terribly
illuminating," said Stephen Wood, chief market strategist at
Russell Investments in New York.
 "It could be profit-taking ... for Canada the loonie is
getting very, very, very strong, and this is obviously going to
have macro-economic consequences for exports and manufacturers
north of the border."
 Canada depends on the United States to take in about
three-quarters of its exports, which are tilted toward
commodities like oil, metals, and natural gas.
 The demand for those exports could come under pressure
because of broad U.S. dollar weakness. The Canadian dollar
pierced parity with the greenback on Thursday for the first
time since April. [CAD/]
 Despite the market's broad decline, the shares of some
base-metal miners jumped as copper touched its highest level in
two years. Teck Resources TCKb.TO advanced 1.33 percent to
C$46.60. [MET/L]
  HudBay Minerals HBM.TO, whose shares have soared since
the company announced a joint venture with Aquila Resources
AQA.TO last year, rose 1.01 percent on Thursday to C$15.99.
 ($1=$1.004 Canadian)
 (Reporting by Claire Sibonney; editing by Peter Galloway)

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