September 26, 2011 / 3:45 PM / 7 years ago

CANADA STOCKS-TSX touches 14-month low on euro zone fears

   * TSX falls 8.05 points, or 0.07 percent, to 11,454.82
 * Touches weakest point since July 2010
 * Five of 10 sectors lower; materials weigh
 By Trish Nixon
 TORONTO, Sept 26 (Reuters) - Toronto’s main stock index fell in volatile trade on Monday, touching a 14-month low, as investors worried that European governments and banks would be unable to solve the region’s debt crisis and avert the threat of a global recession.
 The TSX briefly opened higher on hopes euro zone policymakers were putting together new measures to tackle Greece’s debt woes, but sentiment soured as officials talked down reports of radical new steps to address the crisis. [MKTS/GLOB]
  “At the end of the day, people are still waiting for direction out of Europe, stabilization and the resolution of the Greek debt issue,” said Paul Mesburis, portfolio manager at Excel Funds Management.
 At 11:27 a.m. (1527GMT) the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was down 8.05 points, or 0.07 percent, at 11,454.82. Earlier, it fell to 11,293.63, its weakest point since July 2010.
 Five of the 10 main index groups were lower. The materials sector weighed most heavily as uncertainty about the demand outlook for industrial metals prompted a retreat across the base metal complex. [MET/L]
 Ivanhoe Mines (IVN.TO) was the heaviest decliner as it plunged 10.8 percent to C$14.72, while Teck Resources TCKb.TO fell 1 percent to C$30.42.
 “Part of the issue there is what is the future demand is going to look like coming out of China ... markets are selling off all these various commodities because there is a lot of fear in the market.”
 Gold miners came under pressure as the price of bullion was on course for its largest monthly slide in three years. Kinross Gold (K.TO) fell 1.7 percent to C$15.40 and Goldcorp (G.TO) was down 0.8 percent to C$46.57. [GOL/] 
  Weak U.S. data added to the gloom. New single-family home sales in the United States fell in August to a six-month low, a sign the weak housing market will not provide much support for the flagging economy anytime soon. [ID:nS1E78P0KC]
 Toronto’s financials sector helped to offset losses as it added 0.4 percent. Toronto-Dominion Bank (TD.TO) rose 0.9 percent to C$71.60, while Royal Bank of Canada (RY.TO) was up 0.8 percent to C$46.45.     (Additional reporting by Claire Sibboney; editing by Rob Wilson)                 

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