CANADA STOCKS-TSX lower on weak resources, European banks

* TSX down 49.29 points, or 0.4 percent, at 12,095.63

* Six of index’s 10 main groups lower
(Updates to midmorning, adds quote)

By Jennifer Kwan

TORONTO, Sept 7 (BestGrowthStock) – Toronto’s main stock index
fell on Tuesday morning as oil and base metals prices sank on a
stronger U.S. dollar and renewed concerns about Europe’s
banking sector.

Weakness in the index’s commodity and banking-linked
sectors showed up in such stocks as Suncor Energy (SU.TO: ), down
0.8 percent at C$33.64; Teck Resources (TCKb.TO: ) down 3.2
percent at C$38.45; and Toronto-Dominion Bank (TD.TO: ), which
shed 1.6 percent to C$73.24.

World stocks were lower while the euro fell (Read more about the trembling euro. ) broadly after
the Wall Street Journal reported that Europe’s recent “stress
tests” on major banks underestimated some lenders’ holdings of
potentially risky government debt. [MKTS/GLOB]

“The concerns that upset everyone in May and June are still
hanging around,” said Barry Schwartz, vice president and
portfolio manager at Baskin Financial Services, referring to
worries about the health of the European banking sector.

Schwartz said there is also lingering concern about U.S.
unemployment and sluggish global growth.

At 10:05 a.m. (1405 GMT), the S&P/TSX composite index
(.GSPTSE: ) was down 49.29 points, or 0.4 percent, at 12,095.63,
with six of its 10 main sectors lower. The TSX index had opened
slightly higher before turning negative.

Schwartz also said investors were taking a breather after
the market’s recent rally. “We’ve been up 8 (sessions) in a
row. Valuations now maybe are a little bit stretched,” he

Leading the way lower were energy issues, down 0.8 percent,
and financials, which fell 1.3 percent.

A surge in gold prices to their highest level since late
June limited the index’s losses. Gold rose as investors
returning from North America’s Labor Day holiday bought the
metal as a safe haven from concerns about the health of the
European banking system. [GOL/]

Gold miner Agnico-Eagle (AEM.TO: ) rose 2.5 percent to
C$69.62, and Barrick Gold (ABX.TO: ) was also up 2.5 percent at

In individual company news, Stillwater Mining Co (SWC.N: )
said it would buy Canadian exploration company Marathon PGM
(MAR.TO: ) in a cash-and-stock deal worth US$118 million as it
seeks to expand its platinum and palladium resources.
[ID:nN07218937] Marathon, a top net gainer on the TSX, soared
93 percent to C$3.63.

ResCare Inc (RSCR.O: ) said it agreed to be acquired by
Canadian private equity firm Onex Corp (OCX.TO: ), down 0.9
percent at C$28.80, in a cash deal that values the U.S.
provider of home care to the elderly and disabled at $390
million, after Onex sweetened its initial bid by 65 cents a
share. [ID:nSGE6860G8]

Casey’s General Stores (CASY.O: ), the U.S. Midwest
convenience-store chain fending off a takeover bid from
Canada’s Alimentation Couche-Tard Inc (ATDb.TO: ) said on Tuesday
it has received a rival takeover offer. [ID:nN07218734]
Couche-Tard was down 0.8 at C$23.82.

($1=$1.04 Canadian)
(Reporting by Jennifer Kwan; editing by Peter Galloway)

CANADA STOCKS-TSX lower on weak resources, European banks