CANADA STOCKS-TSX tumbles on China, Spain concerns

Fri Apr 13, 2012 10:41am EDT

* TSX down 130.56 points at 12,084.09
    * All 10 sectors weaker

    By Claire Sibonney	
    TORONTO, April 13 (Reuters) - Canada's main stock index fell
sharply on Friday, snapping a two-day rally after
slower-than-expected growth data from China and a spike in
Spain's borrowing costs hit shares in a broad-based decline. 	
    China's economy grew at its slowest pace in nearly three
years and no signs of fresh stimulus are seen, deepening worries
of slower demand from the resource-hungry economy and hitting
commodities such as oil and copper.  	
 	
    Safe-haven gold was also caught up in the wholesale selloff,
weighing on the index's precious metal miners. 	
    Among the biggest decliners, Royal Bank of Canada 
was down 1.3 percent to C$56.11, Suncor Energy fell 1.9
percent to C$30.37 and Barrick Gold slipped 1.6 percent
to C$41.29.	
    "It looks like equity markets probably have some headwinds
for the next few months," said Robert Kavcic, economist at BMO
Capital Markets.	
    "We've seen some softer U.S. data for once and obviously
growth concerns from China and European debt concerns are
starting to flare up a little bit again, so it's broadly
creating some headwinds for the equity market."	
    Spain's benchmark government bond yield jumped above 5.9
percent after data showed Spanish banks borrowed heavily from
the European Central Bank in March, reviving concerns over the
country's finances. 	
    At 10:17 a.m. (1417 GMT), the Toronto Stock Exchange's
S&P/TSX composite index was down 130.56 points, or
1.07 percent, at 12,084.09. All 10 sectors were weaker.	
    Kavcic noted that valuations on the TSX and S&P 500 are also
more normal now than they were six months ago, when they looked
quite cheap.	
    "That tailwind is pretty well gone for now," he added.	
    In individual company news, Air Canada slipped 1.2
percent to 85 Canadian cents, after it had canceled some 30
flights after what it described as "illegal job action" by some
of its pilots, the latest example of tense labor relations at
the country's biggest airline. 	
    Shaw Commuications dropped 3.8 percent to C$19.98 after
announcing it expected a marginal decline in profit at the cable
unit this year.
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