CANADA STOCKS-TSX slides as resources drop on growth fears

* TSX falls 127.88 points to 11,613.89

* Nine of 10 TSX groups lower; healthcare lone gainer

* U.S. consumer data sparks fears about growth
(Adds details, quotes)

By Jennifer Kwan

TORONTO, July 16 (BestGrowthStock) – Toronto’s main stock index was
lower shortly after the open on Friday as weaker commodity
prices, including a drop in the price of oil, pushed down
shares of resource companies.

The TSX retreated in lockstep with U.S. equities, which
skidded after Citigroup, Bank of America and General Electric
all posted disappointing revenues, while consumer data
suggested sluggish U.S. demand and pointed to a weak recovery.

A reading on consumer sentiment dropped to its lowest level
in 11 months, while consumer prices fell for a third straight
month in June, heightening concerns about deflation.

The gloomy U.S. reading outweighed data from Statistics
Canada showing a gradual recovery in manufacturing pushed up
Canada’s composite leading indicator by 1.0 percent in June,
outweighing the effects of a cooler housing market.

Royal Bank of Canada (RY.TO: ) fell 1.4 percent to C$54.26,
in line with the disappointment about the U.S. bank earnings.

Suncor Energy Inc (SU.TO: ) fell 1 percent to C$32.53 and
Canadian Natural Resources (CNQ.TO: ) dropped 0.7 percent to
C$36.75 as the price of oil sagged on concerns over the pace of
economic recovery. [O/R]

Barrick Gold (ABX.TO: ) fell 1.8 percent, while Goldcorp
(G.TO: ) slid 1.4 percent as bullion prices sank, in part on
technical factors. [GOL/]

“We’re off the risk resource trade because all the metals
are all weak, golds are weak, oil is weak, the financials are
weak so everything is down in Canada basically,” said Paul
Hand, managing director at RBC Capital Markets.

At 10:30 a.m. (1430 GMT), the Toronto Stock Exchange’s
S&P/TSX composite index (.GSPTSE: ) was down 127.88 points at
11,613.89, with nine of its 10 main sectors lower. The small
health care group was up 2 percent.

Elsewhere, North American potash inventories at the
producer level fell slightly in June but remained above the
historic average, according to data released by Potash Corp
(POT.TO: ), the world’s largest producer of the fertilizer.
[ID:nN16273881] Potash shares fell 0.9 percent to C$101.65.

Bombardier Inc (BBDb.TO: ), whose stock was unchanged, said
on Friday that its Chinese joint venture had won a contract for
40 high-speed train sets from China’s Ministry of Railways,
worth about US$761 million. [ID:nN1657524]

($1=$1.05 Canadian)
(Reporting by Jennifer Kwan; editing by Rob Wilson)

CANADA STOCKS-TSX slides as resources drop on growth fears