RIM SHARES DOWN AS INVESTORS GATHER

The Toronto stock market fell about 1% Tuesday as further indications of a slowing Chinese economy helped extinguish early optimism arising from a better-thanexpected earnings report from U.S. aluminum giant Alcoa Inc.

The S&P/TSX composite index dropped 122.45 points to 11,512.22, its fourth consecutive loss, and the TSX Venture Exchange dipped 12.62 points to 1,199.36.

The commodity sensitive Canadian dollar slipped US0.32¢ to US97.79¢ amid sliding oil and copper prices.

U.S. markets also lost steam even as Alcoa reported adjusted earnings of six cents per share, which beat the consensus estimate by a penny. Revenue dropped 9% to US$5.96 billion, because of weak prices for aluminum in the slowing global economy.

The Dow Jones industrial fell 83.17 points to 12,653.12.

The Nasdaq composite index was down 29.44 points to 2,902.33 and the S&P 500 index declined 10.99 points to 1,341.47.

Traders got another reminder of the fragility of the economic recovery after China’s trade growth plunged in June. Import growth fell by half from May’s level to 6.3% while export growth declined to 11.3% from May’s 15.3%.

Growth in the world’s second-largest economy has tumbled to its lowest level since 2008. That’s bad for companies and investors looking to strong Chinese growth to shore up global demand. It’s also negative for the resource-heavy Toronto stock market and the price of oil and metals.

Strong Chinese demand for commodities boosted prices for crude and copper and supported resource stocks on the TSX earlier in the year. But crude has fallen from US$106 in May, copper has tumbled 11.6% and the TSX has fallen almost 6% in 2-1/2 months. The Toronto market now is down about 3.7% year to date.

Commodity prices fell following the release of the Chinese data with the August crude contract on the New York Mercantile Exchange down $2.08 to US$83.91 a barrel. Crude prices also fell after Norway intervened to halt a labour dispute that threatened its North Sea production. The energy sector lost almost 2% as Canadian Natural Resources gave back

48¢ to $25.84 and Cenovus Energy declined 66¢ to $32.25.

The gold sector was off about 2.6% as bullion gave up early gains to climb down $9.30 to US$1,579.80 an ounce. Barrick

Gold Corp. faded 99¢ to $36.37. The financial group stepped back 0.35% and Scotiabank gave back 48¢ to $52.50.

Research In Motion shares were off 36¢ or 4.62% at $7.44 as shareholders gathered for the BlackBerry maker’s annual meeting.