November 21, 2011 / 4:46 PM / in 6 years

CANADA STOCKS-TSX tumbles 2 percent as global debt fears bite

   * TSX down 237.94 pts, or 2 pct, at 11,654.50
 * Oil, gold and copper prices fall
 * Energy and materials issues plunge
 (Adds details, analyst comments)
 By Jon Cook
 TORONTO, Nov 21 (Reuters) - Toronto's main stock index
tumbled 2 percent on Monday morning on heightened fears about
euro zone debt contagion and reports that a U.S. congressional
committee would miss a deadline for a deficit reduction plan.
 In Europe, stock markets fell and bond yields rose as the
euro zone debt crisis appeared to be spreading to the heart of
the currency bloc. [MKTS/GLOB]
 A gloomy European economic forecast on inflation, slowing
exports and rising unemployment had European Central Bank
members predicting a recession in the region by year's end.
 "The increased likelihood that you have a double-dip in
Europe means that anything economically sensitive is selling
off," said Bob Gorman, chief portfolio strategist at TD
 A U.S. congressional committee looked set to fail in an
attempt to cut at least $1.2 trillion from the U.S. deficit
over the next decade, helping lead to the broad selloff in
riskier assets and currencies. [ID:nN1E7AK00C]
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE was down 237.94 points, or 2 percent, at 11,654.50,
amid a global downturn in equity markets. It was the index's
lowest level since Oct. 11.
 Energy and materials issues were hardest hit as investors
worried over the prospects for global economic growth as debt
crises dominated headlines on both sides of the Atlantic.
 The energy sector led the broader index lower, plunging
nearly 3 percent as U.S. crude oil fell $2 a barrel and Brent
crude lost more than $1.[O/R]
 Suncor Energy SU.TO was the biggest drag on energy
issues, tumbling 3.6 percent to C$30.35.
 Mining stocks sagged as gold and copper prices fell
sharply, pulling down the heavily weighted materials sector,
which tumbled 2.5 percent.
 "You've got a flight from risk and, in turn, a
strengthening of the U.S. dollar and that in turn is making
commodities come off," said Gorman.
 Base metal issues fell more than 4 percent as copper prices
fell to their lowest levels in nearly a month on fears of a
European slowdown and warnings from China about gloomy global
growth prospects. [MET/L]
 Tech Resources TCKb.TO was the biggest laggard, tumbling
3.1 percent to C$34.03.
 Gold extended last week's slide, falling more than 1
percent, swept lower by a U.S. dollar that gained on a flight
to safety. [GOL/]
 Goldcorp Inc G.TO was down 2.4 percent at C$50.63, with
the overall gold subsector dropping 2.5 percent.
 ($1=$1.04 Canadian)
 (Editing by Rob Wilson)

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