July 21, 2010 / 8:26 PM / 9 years ago

CANADA STOCKS-TSX dives as Bernanke comments rattle markets

   * TSX down 116.55 points, or 1 percent, at 11,513.33
 * “Unusually uncertain” U.S. recovery adds to jitters
 * Nine of TSX’s main groups drop  (Updates to close, adds quotes)
 TORONTO, July 21 (Reuters) - Toronto’s main stock index fell sharply on Wednesday after the U.S. Federal Reserve said the U.S. economy faces “unusually uncertain” prospects, adding to investor concerns about a slow economic recovery.
 The central bank’s Chairman Ben Bernanke said on Wednesday policymakers believe the U.S. economy is still on a path to recovery, but the Fed is ready to take further steps to bolster growth if needed.  [ID:nWALLIE6DU]
 The remarks to the Senate Banking Committee added to investor jitters about a sluggish economic recovery, helping to push down North American equities. [.N]
 In Canada, big names on the downside included Royal Bank of Canada (RY.TO), off 2.9 percent at C$52.00, Suncor Energy (SU.TO), down 1.8 percent at C$32.54, and Canadian Natural Resources (CNQ.TO), which fell 1.6 percent to C$35.92.
 “It’s all about the outlook being ‘unusually uncertain.’ This is not the environment to put risk on. It’s a perfect environment to duck and cover,” said Francis Campeau, broker at MF Global Canada in Montreal.
 The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE finished the session down 116.55 points, or 1 percent, at 11,513.33.
 Nine of the index’s 10 main groups skidded, while oil and gold prices also dropped. [O/R] [GOL/]
 The index’s heavily weighted energy and financials sectors led the slide, down 1.2 percent and 1.9 percent, respectively. The lone sector in the black was consumer staples, up 0.3 percent.
 ($1=$1.05 Canadian)  (Reporting by Jennifer Kwan)                                        

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