* TSX down 90.65 pts, or 0.7 pct, to 12,113.46
* Financials, resources drag
* China, Europe manufacturing data weighs (Adds details, analyst comments)
By Jon Cook
TORONTO, Dec 1 (Reuters) - Canadian stocks fell on Thursday following three days of gains, as banks and resource issues turned lower after weak global manufacturing data and on fears that Europe’s debt problems would persist.
Despite better than expected earnings by two of Canada’s largest banks, financial stocks sagged more than 1 percent as weak China and Europe manufacturing data renewed fears of a global economic slowdown. [ID:nL5E7N118K]
Bank of Nova Scotia (BNS.TO) led the sector’s losses, falling 2.7 percent to C$50.15. Toronto-Dominion Bank (TD.TO) dropped 2.1 percent to C$71.97 and Canadian Imperial Bank of Commerce (CM.TO) slumped 1.3 percent to C$71.99, even after both lenders reported that their quarterly profits rose more than 50 percent. [ID:nL1E7MU10C] [ID:nN1E7B0034]
“You always run into some kind of profit taking after three days (of gains) and especially the great day we had yesterday,” said John Kinsey, portfolio manager at Caldwell Securities Ltd. “It will be interesting in a new month to see if this late-November rally continues.”
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was down 90.65 points, or 0.7 percent, to 12,113.46 at midday.
On Wednesday the index had its biggest single-day gain since March 2009, spiking more than 4 percent.
Further weighing on financial stocks was a statement by the International Monetary Fund on Thursday that it would likely cut its global growth forecast after a marked slowdown in economic activity because of the euro zone debt crisis. [ID:nW1E7MS00Q]
After jumping nearly 6 percent the previous session, the heavily weighted materials sector was down 1 percent as base metal miners were hit by a decline in copper prices on fears of a drop in demand by China, the world’s largest purchaser of base metals. [MET/L]
Barrick Gold (ABX.TO), fell 1.4 percent to C$53.29, Goldcorp (G.TO) dipped 1.8 percent to C$53.95, and First Quantum Minerals (FM.TO), was down 3.5 at C$19.88, leading the sector lower.
Energy stocks, which edged down 0.7 percent, were impacted by a dip in U.S. crude as government data showed that jobless benefit claims rose last week to their highest level since late October, sparking worries of a demand shortage. [O/R]
Suncor Energy (SU.TO) was among the biggest laggards, dropping 0.8 percent to C$30.47.
In other earnings news, Lululemon Athletica Inc’s shares tumbled nearly 11 percent to C$45.32 in early trade after the retailer announced its quarterly profit rose but sales of its signature yoga wear missed analyst expectations. [ID:nL4E7N129C] (Editing by Jeffrey Hodgson)