CANADA STOCKS-TSX falls as China rate hike hits commodities

*TSX falls 60.74 points to 12,607.27

*Six of index’s 10 sectors weaker

*Financial group up 0.4 percent
(Updates with details, commentary) (Read more stock market commentary today.

By Claire Sibonney

TORONTO, Oct 19 (BestGrowthStock) – Toronto’s main stock index fell
on Tuesday morning as commodity prices weakened on the back of
a stronger greenback after China unexpectedly hiked interest
rates.

Gold, base-metals and oil prices all tumbled, and the
safe-haven U.S. dollar rose, following the announcement, which
caught investors off guard. [O/R] [GOL/] [MET/L]

Among the biggest decliners on the Toronto market were
gold-mining shares, down 2.6 percent; base-metal miners, off
2.3 percent; and energy producers, which fell 0.7 percent.

Barrick Gold Corp (ABX.TO: ), the world’s No. 1 gold
producer, fell 3.1 percent to C$47.03, while Agnico Eagle
(AEM.TO: ) sank 3.3 percent to C$71.04.

“What really hit the market was China’s move,” said Fergal
Smith, managing market strategist at Action Economics.

“The market has been driven higher by looser monetary
policy globally, but now China has surprised the market by
tightening policy, that’s seen as a rethink on stocks and on
gold prices, which have been driven higher by monetary
stimulus.”

The Chinese rate hike was the first in nearly three years,
a step that reflects central bank concern about rising domestic
asset prices and stubborn inflation. [ID:nTOE63E07V]

Also weighing on sentiment, results from U.S. technology
titans Apple Inc (Read more about Apple stock future.) (AAPL.O: ) and IBM (IBM.N: ) disappointed
investors and raised doubts about the strength of third-quarter
earnings. [.N]

However, Bank of America Corp (BAC.N: ) beat Wall Street
expectations, which helped to boost confidence in heavily
weighted Canadian financial stocks, up 0.4 percent, and
tempered the index’s losses overall. [ID:nN19106691]

At 10:21 a.m. (1421 GMT), the Toronto Stock Exchange’s
S&P/TSX composite index (.GSPTSE: ) was down 60.74 points, or
0.48 percent, at 12,607.27. Six of its 10 sectors were lower.

Potash Corp (POT.TO: ) rose 1.7 percent to C$147.84 after the
chief executive of Yara International (YAR.OL: ) said that the
Norwegian fertilizer firm was open to buying assets from
Potash, the world’s largest fertilizer producer.
[ID:nLDE69H07O]

($1=$1.03 Canadian)
(Editing by Peter Galloway)

CANADA STOCKS-TSX falls as China rate hike hits commodities