Business
China loans weigh on TSX
China loans weigh on TSX
About this update from Thomson Reuters Corporation
[{"type":"text","content":"\nChina loans weigh on TSX\n\nGold weighs down T.O.\n Jan. 20, 2010 (Baystreet.ca) -- Worries about tighter lending standards in China sparked sharp losses on the Toronto stock market Wednesday afternoon. \n\nThe S&P/TSX Composite Index fell 84.10 points to finish the day at 11,603.15.\n\nInvestors also took in data showing that volatile gasoline prices pushed Canada's annual inflation rate up in December. The better-than-expected inflation reading, along with strength in the U.S. dollar and weak oil and metal prices, depressed the Canadian dollar.\n\nStatistics Canada said today that consumer price index rose 1.3% in the 12 months to December, after rising 1% in the previous month. The rise was primarily due to gasoline prices, which rose 25.6% year over year in December. \n\nThe agency noted that December's on-year increase was the largest since February 2009. The inflation came in at less than the widely expected rise of 1.6% and stayed below the central bank's target. \n\nIn other economic news, Statistics Canada said country's manufacturing sales inched by a less-than-expected 0.1% in November, mainly pressured by a 4.3% slide in transportation industry.\n\nCommodity prices backed off after the chairman of the Chinese Banking Regulatory Commission said that China will slow its massive lending spree and step up monitoring of banks as it tries to prevent speculative bubbles in real estate and other assets while keeping the country's economic recovery on track.\n\nLiu Mingkang said the total amount of loans will grow by as much as 18% in 2010 year over year, compared to nearly 32% in 2009.\n\nThe regulators comments raised fears that China's strong economic recovery could fade, undermining a fragile global economy.\n\nThe gold sector was down, as Barrick Gold declined $1.21 to $39.70 while Goldcorp Inc. faded $1.58 to $40.02.\n\nThe base metals sector was down as the March copper contract on the Nymex declined nine cents to $3.35 U.S. a pound. Teck Resources lost 29 cents to $41.47 and Labrador Iron Mines Holdings fell 39 cents to $6.65.\n\nThe Toronto energy sector moved down as Imperial Oil lost 48 cents to $40.15 while EnCana Corp. fell 25 cents to $35.39.\n\nThe TSX financial sector weakened, as Scotiabank fell 34 cents to $45.95.\n\nAnd shares in Sun Life Financial dipped 17 cents to $32.68 as it announced it will pay at ...