July 16, 2010 / 9:02 PM / 9 years ago

CANADA STOCKS-TSX skids on fears about global recovery

* TSX down 172.12 points, or 1.47 percent, at 11,569.65

* U.S. consumer data ignites fears about growth

* Nine of 10 main TSX groups end lower (Adds official closing numbers, quotes)

By Jennifer Kwan

TORONTO, July 16 (Reuters) - Toronto’s main stock index skidded on Friday as weak U.S. economic data and earnings results heightened worries about a slow recovery, and pushed down heavily weighted resource issues.

Toronto’s slide tracked a sharp decline by U.S. stocks, which tumbled in part after consumer sentiment fell to nearly a one-year low, highlighting the sluggishness of the economic recovery.

As well, weak energy costs pushed U.S. consumer prices down for a third straight month in June. [.N]

“You get a little bit of enthusiasm going here and all of a sudden you get squashed because consumer sentiment in the U.S. fell to an 11-month low,” said Fred Ketchen, director of equity trading at ScotiaMcLeod.

“That tells you there’s not a lot of confidence out there.”

Suncor Energy Inc (SU.TO) was down 1.6 percent at C$32.33, dragged lower as oil fell to around $76 a barrel on jitters about the health of the economic recovery. [O/R]

Barrick Gold (ABX.TO) fell 1.9 percent to C$44.00 as U.S. gold dropped on weak inflation data and a selloff in equities prompted fund selling. [GOL/]

“Fears are still there about double dips,” said Ketchen, referring to the selloff in commodities.

The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE ended down 172.12 points, or 1.47 percent, at 11,569.65, with nine of its 10 main sectors lower. The small healthcare group rose 2.7 percent. For the week, the TSX was down 0.01 percent.

The worries helped to push down each of the index’s key energy, materials and financial groups by more than 1.5 percent.

Also weighing on investor sentiment were disappointing quarterly revenue from U.S. bellwether General Electric, as well as Bank of America and Citigroup. [.N]

Canadian banks got caught up in the sour mood, with Royal Bank of Canada (RY.TO) down 1.7 percent at C$54.09, while Bank of Nova Scotia (BNS.TO) fell 1.4 percent at C$51.71.

$1=$1.06 Canadian Reporting by Jennifer Kwan; editing by Rob Wilson

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below