September 19, 2011 / 8:54 PM / 7 years ago

CANADA STOCKS-TSX falls to one-week low on euro zone fears

   * Down 91.67 points, or 0.75 percent, at 12,172.04.
 * Eight of 10 main groups lower; energy, materials drag  (Updates to close, adds analyst comment)
 By Trish Nixon
 TORONTO, Sept 19 (Reuters) - Toronto’s main stock index slumped on Monday, touching a one-week low, as renewed fears of a Greek default and the potential fallout for the broader euro zone pressured global equities and commodities.
 The TSX’s heavyweight materials and energy sectors led the way down, as oil fell more than 2 percent and copper slid to a 2011 low on fears of slowing global demand.
 Among the top decliners were First Quantum Minerals (FM.TO), which dropped 8.4 percent to C$19.41, and Canadian Natural Resources (CNQ.TO), off 2.1 percent to C$33.48. [O/R] [MET/L]
 “This Greek situation has got everybody kind of spooked,” said John Kinsey, portfolio manager at Caldwell Securities Ltd., noting the market seems to be preparing for Greece to default on its debt.
 “A lot of people now are kind of resolved that it’s going to happen, but they’re hoping for the best, that it might be on a structured basis rather than just complete and utter chaos.”
 European officials ended a weekend meeting without agreeing on new ways to tackle the debt crisis, and a call by U.S. Treasury Secretary Timothy Geithner at the meeting for more fiscal stimulus was rejected.
 The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE ended the session down 91.67 points, or 0.75 percent, at 12,172.04. Earlier in the session it fell to 12,117.77, the lowest point since Sept. 12.
 Doubts about U.S. fiscal policy also spoiled appetite for riskier assets. President Barack Obama laid out a $3 trillion plan to cut U.S. deficits by raising taxes on the rich. But Republicans mocked it as a political stunt, signaling the proposal has little chance of becoming law. [ID:nS1E78I0K3]
 Canadian banks performed relatively well compared with their U.S. and European counterparts, with Toronto’s financial sector ending down just 0.2 percent. Royal Bank of Canada (RY.TO) was the most influential advancer on the TSX, adding 0.7 percent to C$46.60.  (Editing by Jeffrey Hodgson)                 

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