TSX stumbles on China concerns

Resource companies led the way to a negative session on the Toronto stock market Monday amid lower growth forecasts from China. The S&P/TSX composite index lost 119.87 points to 12,523.95 while the TSX Venture Exchange slipped 23.07 points to 1,655.83.

The commodity-sensitive Canadian dollar backed off 0.57 of a cent (U.S.) to 100.58 cents as demand concerns pushed down prices for copper.

U.S. markets were also in the red after China’s premier Wen Jiabao lowered the economy’s growth tar- get to 7.5 per cent from the 8 per cent level it has stood at for years as he outlined plans to boost domestic consumption and to maintain a “prudent” monetary policy.

Wen said that China’s economy is encountering new problems, citing downward pressure on economic growth and high prices.

The Dow Jones industrial average lost 14.76 points to 12,962.81, the Nasdaq composite index was down 25.71 points to 2,950.48 and the S&P 500 index dipped 5.3 points to 1,364.33.

China’s economy grew by 9.2 per cent last year, down from 10.3 per cent in 2010. Oil prices were volatile and the April contract on the New York Mercantile Exchange closed two cents higher to $106.72 a barrel and the energy sector declined 1.83 per cent. But the base metals component was down 4.42 per cent as May copper shed 4 cents to $3.86 a pound. The gold sector lost 1.71 per cent as bullion also headed lower with the April contract down $5.90 to $1,703.90 an ounce.