TSX stumbles as golds dive after U.S. jobs data

By John Tilak

TORONTO (Reuters) - Canada's main stock index stumbled on Friday after a robust U.S. jobs report showed growing strength in the world's largest economy but lessened the appeal of safe-haven assets such as bullion, causing gold-mining stocks to dive.

Shares of gold producers dropped almost 5 percent, with Barrick Gold Corp , the world's largest gold miner, losing more than 5 percent of its market value to hit its lowest level in about 21 years.

Increasing signs that U.S. economic recovery is gathering speed raised fears that the Federal Reserve might dial down its massive stimulus program later this year.

Data showed U.S. job growth was stronger than expected in June and that the employment count for the previous two months was higher than initially reported.

"It's good news for the economy but bad news for the people who think that quantitative easing is going to be here forever. It's not," said Irwin Michael, portfolio manager at ABC Funds.

"Once you get palpable results that the economy is getting better, you don't want to see the Fed poking around too much," he added. "You want to see the economy getting stronger on its own."

The Toronto Stock Exchange's S&P/TSX composite index <.gsptse> was down 59.23 points, or 0.49 percent, at 12,107.43.

Nine of the 10 main sectors on the index were in the red.

The materials sector, which includes mining stocks, declined the most among the major groups, giving back 2.1 percent. Gold miners tumbled in a volatile session after the price of the precious metal fell, with the U.S. dollar rising on the jobs news.

Barrick fell to C$14.53, hitting its lowest level since May 1992, and Goldcorp Inc lost 3.1 percent to C$25.

Energy shares declined 0.3 percent. Suncor Energy Inc was down 0.5 percent at C$30.94, and Canadian Natural Resources Ltd fell 0.4 percent to C$31.30.

Financials slipped 0.2 percent, and utilities fell 0.8 percent.

($1=$1.06 Canadian)

(Additional reporting by Cameron French; Editing by Peter Galloway)

Source: http://news.yahoo.com/tsx-may-open-higher-u-jobs-data-eyed-123514984.html

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