CANADA STOCKS-TSX weighed down by U.S. data, profit-taking

*TSX down 51.16 points at 12,622.15

*All 10 sectors weaker
(Recasts, updates to mid-afternoon)

By Claire Sibonney

TORONTO, Oct 14 (BestGrowthStock) – Toronto’s main stock index
retreated on Thursday afternoon from the two-year high it hit
the day before, pulled down by weak U.S. economic data despite
rallying commodity prices.

All three of the index’s heavyweight sectors were hit —
energy, down 0.9 percent, materials, down 0.2 percent, and
financials, off 0.2 percent.

Among the biggest decliners were Suncor Energy (SU.TO: ),
which fell 1.8 percent to C$34,68, and Barrick Gold Corp
(ABX.TO: ), which slipped 0.8 percent to C$49.02.

Data showed new U.S. claims for jobless benefits rose
unexpectedly last week, hardening the view that the U.S.
Federal Reserve will pump more money into the economy in hopes
of boosting growth and lowering unemployment. [ID:nN14277059]

Other data on Thursday showed record-high imports from
China helped widen the U.S. trade deficit wider in August,
which could drag on U.S. growth and increase international
tensions over trade and currency policy.

“You’ve got stocks and commodities north and south of the
border that have done extremely well in a very short period of
time, so any one day’s price movement is probably not terribly
illuminating,” said Stephen Wood, chief market strategist at
Russell Investments in New York.

“It could be profit-taking … for Canada the loonie is
getting very, very, very strong, and this is obviously going to
have macro-economic consequences for exports and manufacturers
north of the border.”

Canada depends on the United States to take in about
three-quarters of its exports, which are tilted toward
commodities like oil, metals, and natural gas.

The demand for those exports is expected to be pressured by
broad U.S. dollar weakness, which on Thursday allowed the
Canadian dollar to pierce parity with the greenback for the
first time since April. [CAD/]

Base-metal miners were up 0.4 percent as copper touched its
highest in two years. Teck Resources (TCKb.TO: ) advanced 0.8
percent to C$46.36. [MET/L]

At 2:10 p.m. (1810 GMT), the Toronto Stock Exchange’s
S&P/TSX composite index (.GSPTSE: ) was down 51.16 points, or 0.4
percent, at 12,622.15. All of its 10 sectors were lower.

“We’re definitely due for a bad day,” said Barry Schwartz,
vice-president and portfolio manager at Baskin Financial
Services. “Nothing goes straight up.”

($1=$1.01 Canadian)
(Reporting by Claire Sibonney; editing by Peter Galloway)

CANADA STOCKS-TSX weighed down by U.S. data, profit-taking