July 25, 2011 / 2:48 PM / 8 years ago

CANADA STOCKS-TSX lower as U.S. debt troubles, RIM drag

   * TSX off 15.17 points, or 0.1 pct, at 13,479.46
 * Eight of 10 sectors weaker, golds rise on record prices
 * RIM drops 3.3 percent after job cuts announced  (Updates with details, commentary)
 By Claire Sibonney
 TORONTO, July 25 (Reuters) - Toronto’s main stock index fell on Monday morning as an impasse in U.S. debt ceiling talks fueled worries of a default and Research In Motion RIM.TO dropped on news of major job cuts.
 Heavily weighted financial issues fell 0.4 percent while energy shares lost 0.3 percent.
 Toronto-Dominion Bank (TD.TO) was the most influential laggard, skidded 0.9 percent to C$80.02, while Royal Bank of Canada (RY.TO) eased 0.4 percent to C$53.02.
 “It’s sort of the usual suspects. This debt ceiling in the U.S. has everybody worried,” said John Kinsey, portfolio manager at Caldwell Securities.
 “The financials, when it looked like they were getting some traction, are all getting hit ... because of that and it’s spilled over into just about everything.”
 Prospects of a budget breakthrough that would allow the United States to raise its debt ceiling and avoid default on its bond payments faded over the weekend as lawmakers missed a self-imposed deadline to reach a deal. [ID:nN1E76N0CA]
 News over the weekend of a deadly bomb attack and shooting rampage in Norway and a further cut to Greece’s credit rating by Moody’s on Monday only added to the market malaise, added Kinsey. [ID;nL6E7IO0H9] [ID:nL3E7IP0P2]
 RIM dropped 3.3 percent to C$25.59 after the BlackBerry maker announced plans to cut about 11 percent of its workforce to slash costs as it struggles to compete against Apple Inc (AAPL.O) and Google Inc (GOOG.O). [ID:nL3E7IP251]
 Train and plane maker Bombardier (BBDb.TO) sank 5.2 percent to C$5.80 after a deadly train crash in China over the weekend, which raised concerns about the safety of the country’s fast-growing rail network. [ID:nL3E7IP08Z]
  At 10:26 a.m. (1426 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was down 15.17 points, or 0.1 percent, at 13,479.46. Eight of its 10 main sectors were weaker.
 On the bright side, gold prices hit record highs in a broad flight to safety, sending gold miners up 0.4 percent, which helped to stem the losses.
 Among the most influential climbers, Barrick Gold (ABX.TO) rose 0.3 percent to C$47.78. Quadra FNX Mining QUX.TO surged 7.6 percent to C$16.21, after the company reported second-quarter production jumped 20 percent. [ID:nL3E7IP25K]
 ($1=$0.95 Canadian)  (Reporting by Claire Sibonney: editing by Rob Wilson)                                        

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