November 22, 2011 / 5:10 PM / 7 years ago

CANADA STOCKS-TSX drops on US data, persisting European fear

 * TSX down 38.12 pts, or 0.3 pct, at 11,746.60
 * Rising gold price lifts materials sector
 * Weak U.S. GDP data weighs on stocks  (Adds details and analyst’s comments)
 By Jon Cook
 TORONTO, Nov 22 (Reuters) - Toronto’s main stock index was lower on Tuesday as resource-related issues were hurt by unexpectedly weak U.S. third-quarter economic growth data and persisting fears about a slowdown in Europe.
 Nearly all of the Toronto index’s 10 main sectors were lower with energy stocks the biggest drag, falling 1 percent. Oil and gas shares have been especially sensitive in recent sessions to shifting expectations for global economic growth.
 Suncor Energy (SU.TO) led the sector’s declines, dropping 1.7 percent to C$30.41.
 The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was down 38.12 points, or 0.3 percent, at 11,746.60, after opening slightly higher at 11,784.72.
  U.S. gross domestic product data showed the economy grew at a 2 percent annual rate in the last quarter, down from a previous estimate of 2.5 percent. [ID:nCAT005556]
 Also dragging on stocks was a persistently tenuous European debt picture, as rising bond yields for Italy, Spain, France and Belgium added to investor concerns that the euro zone is headed into a recession. [MKTS/GLOB]
 “There’s more contagion going on for all the equities markets,” said Douglas Davis, chief executive at Davis-Rea.
 Materials, the TSX’s only positive sector, was helped by gold prices, which gained more than 1 percent after hitting a four-week low of $1,665.88 on Monday and falling nearly 5 percent over the last two weeks. [GOL/]
 Goldcorp Inc (G.TO), rising 0.6 percent to C$51.78, and Barrick Gold (ABX.TO), up 1.2 percent at C$50.47, led gains.
 “Gold took a pretty good hit yesterday so we’re getting some rebound (today),” Davis said.
 ($1=$1.04 Canadian)  (Editing by Peter Galloway)                 

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