CANADA STOCKS-TSX drops 1 percent on Fed comments, commodity prices

TORONTO, Sept 18 (Reuters) - Canada's main stock index fell
1 percent on Friday as investors held on to concerns raised by
the U.S. Federal Reserve about global economic growth and
sell-offs in the prices of copper and oil weighed on resource
shares.
Commodity prices have been under pressure in the past few
weeks and market volatility has been on the rise due to
questions about China's economic growth.
After hitting a two-week high in the previous session, the
benchmark Canadian index moved sharply lower, reflecting its
exposure to oil and copper stocks.
Global economic risks and concern about inflationary
pressure prompted the Fed to push back its plans to raise
interest rates. ID:nTLAHKEB0L
"There's enough to suggest that they are still on track to
raise rates this year," said Colin Cieszynski, chief market
strategist at CMC Markets. "But people are worried, 'If you're
not raising rates, it must be really bad'."
He said it is a negative phase for equities "between the
falling oil price and the seasonality and the talk from the
Fed."
"There's potential over the next month or so that we could
see weakness in the markets while this sorts itself out," he
said.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed down 140.26 points, or 1.02 percent, at
13,646.90. Six of the 10 main sectors on the index were in the
red.
The energy sector slumped 2.2 percent. Suncor Energy Inc
SU.TO dropped 3.1 percent to C$34.05, and Canadian Natural
Resources Ltd CNQ.TO declined 3.6 percent to C$26.95.
In the mining sector, First Quantum Minerals Ltd FM.TO
fell 8.4 percent to C$6.95 and Teck Resources Ltd TCKb.TO lost
6.8 percent to C$8.12.
Financials, the index's most heavily weighted sector,
slipped 1.6 percent. Bank of Nova Scotia BNS.TO gave back 1.8
percent to C$58.10.