June 29, 2010 / 2:54 PM / 9 years ago

CANADA STOCKS-TSX dives on China growth, euro zone worries

*TSX falls 254.91 points, or 2.2 percent, to 11,352.09

*All 10 of TSX index’s down

*China data revision, bank funding hits TSX (Adds details, quote)

By Jennifer Kwan

TORONTO, June 29 (Reuters) - Toronto’s main stock index fell sharply on Tuesday morning as commodity prices fell on renewed fears about slowing growth in China and as worries about Europe’s debt problems undermined risk appetite.

Weakness in its energy, financials and materials sectors — the three pillars of the Toronto index — pushed the TSX index to its lowest level since May 25.

Teck Resources TCKb.TO dropped 6 percent to C$31.71 and Potash Corp of Saskatchewan POT.TO fell 2.4 percent to C$92.72, pushing the materials sector down by 1.9 percent.

The energy sector fell 2.7 percent, dragged down by Suncor Energy (SU.TO), which lost 3 percent to C$31.93, and Canadian Natural Resources (CNQ.TO), down 2.9 percent to C$35.21

The index’s move lower was largely fueled by revision to the Conference Board’s leading economic index for China to a 0.3 percent gain in April rather than the 1.7 percent rise the group had reported earlier. [ID:nN29126233]

“There’s a lot of concern around policy measures being taken in China to slowdown the economy there. It looks like the slowdown might be a bit sharper than what a lot of people thought,” said Jean-Francois Dion, vice president and portfolio advisor, Canadian equities, at RBC Dominion Securities.

Dion and other market observers saw the correction as the main market-moving headline, despite being a second-tier data point.

“Given how important China is in the current environment and how much concern there’s been to the growth in China, I think that’s absolutely what’s moving the market today,” Dion said.

At 10:20 a.m. (1420 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was down 254.91 points, or 2.2 percent, at 11,352.09, with all of its 10 main groups lower. The index touched a low of 11,334.91.

Another key factor pushing the index lower was jitters around bank repayments worth 442 billion euros to the European Central Bank on Thursday, leaving a potential liquidity shortfall in the financial system of more than 100 billion euros. [MKTS/GLOB]

Financials lost 2.3 percent, with Royal Bank of Canada (RY.TO), the country’s biggest lender, down 2.9 percent at C$51.10.

$1=$1.05 Canadian Reporting by Jennifer Kwan; editing by Peter Galloway

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below