Stimulus rollback fears, TD trigger TSX slump

TORONTO (Reuters) - Canada's main stock index stumbled on Thursday, with every major sector in the red on concerns about a quicker-than-expected end to the U.S. Federal Reserve's stimulus program and sluggish economic data from China and Europe.

further weighed on the market after the country's No. 2 lender reported earnings slightly below expectations.

TD Bank gave back 1 percent to C$83.22, was the worst performer among Canada's six largest banks and key to driving the market lower.

Investors were nervous after U.S. Fed Chairman Ben Bernanke told Congress on Wednesday that a decision to scale back massive bond buying each month could come at one of the central bank's "next few meetings" if the economy looked set to maintain momentum.

"We all know that at some point, the Fed's going to have to do something to withdraw some of that liquidity they put in the marketplace," said Irwin Michael, portfolio manager at ABC Funds.

"It's a game of chicken," he added. "People are waiting to find out when, and they will probably react in the short run."

Other negative market factors included surveys showing China's factory activity shrank for the first time in seven months in May and that the euro zone economy was likely to contract again in the second quarter.

The Toronto Stock Exchange's S&P/TSX composite index <.gsptse> tumbled 102.12 points, or 0.80 percent, at 12,650.38.

All of the 10 main sectors in the index were losers.

Shares of energy producers fell 1.3 percent, reflecting lower oil prices. Miner Teck Resources Ltd fell 4.3 percent to C$28.17. Suncor Energy Inc , Canada's largest energy company, was down 0.6 percent, at C$32.31.

Financials, the index's most heavily weighted sector, lost 0.8 percent, led by TD Bank.

The materials sector, which includes mining stocks, was down 0.5 percent despite a 1.4 percent rise in shares of gold companies.

Potash Corp slipped 2.1 percent to C$43.02.

Among other active stocks, Nordion Inc jumped as much as 11 percent after the major provider of isotopes used in medical imaging said it will sell its targeted therapies division.

(Editing by Jeffrey Hodgson and Jeffrey Benkoe)

Source: http://news.yahoo.com/tsx-may-open-lower-bernankes-comments-125103006.html

octomom stoudemire jordan hill tony nominations dark knight trailer dallas mavericks washington capitals