CANADA STOCKS-TSX records biggest weekly decline since May

Fri Aug 1, 2014 4:58pm EDT

* TSX down 115.48 points, or 0.75 percent, at 15,215.26
    * Eight of the 10 main index sectors decline
    * Gold-mining shares climb with bullion price

    By John Tilak
    TORONTO, Aug 1 (Reuters) - Canada's main stock index fell on
Friday and recorded its biggest weekly decline since early May,
rattled by uncertainty about U.S. Federal Reserve's
interest-rate stance and by fears that Argentina's debt default
might signal broader instability.
    Global markets have tumbled since the default by Argentina
earlier this week, with geopolitical tensions exacerbating the
negative sentiment. Market volatility has shot up in recent days
as a result.
     Data on Friday showed U.S. employers added fewer jobs than
expected in July and the unemployment rate edged up. The market
initially viewed that favorably, as a sign that the Fed may not
raise rates anytime soon, before investor gloom took hold.
 
    "Everyone is a little scared. This is the pullback we've
been waiting for. This is it," said Marcus Xu, portfolio manager
and president at M.Y. Capital Management Corp in Vancouver.
    "Selling will breed more selling," he added. "I don't think
you want to jump in front of the train, at least not yet."
    The Toronto Stock Exchange's S&P/TSX composite index
 closed down 115.48 points, or 0.75 percent, at
15,215.26. Eight of the 10 main sectors on the index were in the
red.
    Financials, the index's most heavily weighted sector, gave
back 1.1 percent. Royal Bank of Canada lost 1.4 percent
to C$79.37, and Toronto-Dominion Bank declined 0.9
percent to C$56.52.
    The gold-mining sector jumped 1.4 percent, with the price of
bullion gaining after the U.S. jobs report. Barrick Gold Corp
 added 1 percent to C$19.89, and Goldcorp Inc 
advanced 1.4 percent to C$30.28.
    Eldorado Gold Corp jumped 6.9 percent to $8.65, a
day after the miner reported quarterly results.
    Valeant Pharmaceuticals International Inc's shares,
which sold off on Thursday after the company cut its financial
forecasts, rebounded a bit. They were up 1.1 percent at
C$129.22. 
    ($1=$1.09 Canadian)

 (Editing by Meredith Mazzilli; and Peter Galloway)
 
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (0)
Be the first to comment on reuters.com.
Add yours using the box above.