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Nov. 21, 2011, 5:05 p.m. EST

Canada stocks, loonie fall on global debt fears

Resources hit hard as oil and gold prices move lower; RIM in retreat

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By Nicole Hong, MarketWatch

SAN FRANCISCO (MarketWatch) — Canadian stocks dropped Monday as global markets tanked on U.S. and euro-zone debt concerns.

Toronto’s benchmark S&P/TSX Composite Index fell 107.72 points, or 0.9%, to 11,784.72. This was the index’s lowest close since Oct. 7.

Adding to ongoing contagion fears over Europe’s sovereign-debt crisis, the congressional supercommittee announced late Monday afternoon that it has failed to reach a bipartisan plan on deficit reduction.

The 12-member panel, formed in August after a rancorous debate on raising the U.S. debt ceiling, was supposed to come up with more than $1.2 trillion in spending cuts to be made over 10 years.

“The U.S. markets took a big beating, and that pulled the Canadian market down,” said John Kinsey, portfolio manager at Caldwell Securities in Toronto. “Everybody’s getting disappointed over the nonsense in Europe, and this just added to the disappointment.”

The Canadian dollar depreciated sharply against its U.S. counterpart /zigman2/quotes/210561978/realtime/sampled USDCAD +1.1324% , as investors piled into the greenback for its safe-haven status. One U.S. dollar recently purchased 1.0385 Canadian, versus 1.0284 late Friday. By the end of North American trading Monday, the loonie was near its weakest level against the greenback since Oct. 7.

Gold, silver and copper prices also dropped, weighing on shares in the metals and mining sector: Kinross Gold Corp. /zigman2/quotes/200423011/delayed CA:K -2.39%   /zigman2/quotes/208295151/composite KGC -3.37%  lost 2.3% as Agnico-Eagle Mines Ltd. /zigman2/quotes/205100210/delayed CA:AEM -1.82%   /zigman2/quotes/200957337/composite AEM -3.04%  traded down 4%.

Shares of Silvercorp Metals Inc. /zigman2/quotes/210397281/delayed CA:SVM -0.84%  also fell, dropping 4.8% after the Sino-Canadian miner said it would buy China’s SX Gold Mining Co. for about $23 million.

Futures of precious metals slipped to begin the trading week, as investors exited riskier assets for the U.S. dollar. Gold for December delivery  shed $46.50, or 2.7%, to close at $1,678.60 an ounce on the New York Mercantile Exchange, as the silver contract lost 4%. Read more on gold.


Reuters
Mike Lazaridis, co-CEO of Research In Motion, discussing the BlackBerry PlayBook tablet during a San Francisco developers conference last month. (Reuters photo: Beck Diefenbach.)

Energy stocks in Toronto also posted broad declines as crude-oil futures slumped. Shares of sector heavyweight Suncor Energy Inc. /zigman2/quotes/204570600/delayed CA:SU +1.71%   /zigman2/quotes/210480277/composite SU +0.56%  shed 1.8% while Canadian Natural Resources Ltd. /zigman2/quotes/203742161/delayed CA:CNQ +1.09%   /zigman2/quotes/203976248/composite CNQ -0.21%  lost 1.6%.

Crude for January delivery  dropped 75 cents , or 0.8%, to settle at $96.92 a barrel on Nymex. Oil prices were also hurt by a warning from Moody’s Investors Service about France’s AAA credit rating. Read more on oil.

Also Monday, Toronto-listed shares of Research In Motion Ltd.    fell 3.8% after JMP Securities issued a downgrade and RBC Capital and Credit Suisse cut their respective price targets on the BlackBerry maker. Read more on RIM.

Among the few gainers, shares of Valeant Pharmaceuticals International Inc.  added 0.6% after the drugmaker said it agreed to buy iNova, a privately held Australian pharmaceutical group.

/zigman2/quotes/210561978/realtime/sampled
US : Tullett Prebon
1.3665
+0.0153 +1.1324%
Volume: 0.0000
Oct. 5, 2022 12:31p
loading...
/zigman2/quotes/200423011/delayed
CA : Canada: Toronto
$ 5.30
-0.13 -2.39%
Volume: 1.15M
Oct. 5, 2022 12:15p
P/E Ratio
N/A
Dividend Yield
2.93%
Market Cap
$7.06 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/208295151/composite
US : U.S.: NYSE
$ 3.88
-0.14 -3.37%
Volume: 11.47M
Oct. 5, 2022 12:30p
P/E Ratio
N/A
Dividend Yield
3.09%
Market Cap
$5.19 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/205100210/delayed
CA : Canada: Toronto
$ 60.27
-1.12 -1.82%
Volume: 509,620
Oct. 5, 2022 12:15p
P/E Ratio
26.85
Dividend Yield
3.48%
Market Cap
$27.98 billion
Rev. per Employee
$517,135
loading...
/zigman2/quotes/200957337/composite
US : U.S.: NYSE
$ 44.03
-1.38 -3.04%
Volume: 2.28M
Oct. 5, 2022 12:30p
P/E Ratio
24.89
Dividend Yield
3.63%
Market Cap
$20.59 billion
Rev. per Employee
$408,001
loading...
/zigman2/quotes/210397281/delayed
CA : Canada: Toronto
$ 3.53
-0.03 -0.84%
Volume: 200,077
Oct. 5, 2022 12:14p
P/E Ratio
17.41
Dividend Yield
0.90%
Market Cap
$630.07 million
Rev. per Employee
$211,385
loading...
/zigman2/quotes/204570600/delayed
CA : Canada: Toronto
$ 44.03
+0.74 +1.71%
Volume: 3.30M
Oct. 5, 2022 12:15p
P/E Ratio
6.72
Dividend Yield
4.27%
Market Cap
$59.08 billion
Rev. per Employee
$3.01M
loading...
/zigman2/quotes/210480277/composite
US : U.S.: NYSE
$ 32.20
+0.18 +0.56%
Volume: 2.95M
Oct. 5, 2022 12:30p
P/E Ratio
6.25
Dividend Yield
4.26%
Market Cap
$43.47 billion
Rev. per Employee
$2.37M
loading...
/zigman2/quotes/203742161/delayed
CA : Canada: Toronto
$ 73.14
+0.79 +1.09%
Volume: 1.20M
Oct. 5, 2022 12:15p
P/E Ratio
7.60
Dividend Yield
4.10%
Market Cap
$83.52 billion
Rev. per Employee
$4.01M
loading...
/zigman2/quotes/203976248/composite
US : U.S.: NYSE
$ 53.43
-0.11 -0.21%
Volume: 1.22M
Oct. 5, 2022 12:30p
P/E Ratio
7.05
Dividend Yield
4.24%
Market Cap
$61.45 billion
Rev. per Employee
$3.17M
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Nicole Hong is a MarketWatch reporter, based in San Francisco.

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