Canada Stocks Fall as Copper Slides, Carney Cuts Growth Forecast

Canadian stocks fell, led by commodity producers, after the Bank of Canada cut its growth outlook for the economy and said that economic slack will persist for more than two years.

Teck Resources Ltd., Canada’s largest diversified miner, and First Quantum Minerals Ltd. (FM) dropped at least 3.8 percent as copper plunged. Suncor Energy Inc. and Canadian Natural Resources Ltd. lost more than 1.2 percent as crude fell for the fourth time in five days.

The Standard & Poor’s/TSX Composite Index (SPTSX) fell 94.27 points, or 0.8 percent, to 12,025.65 at 10:23 a.m. in Toronto. The benchmark equity gauge has fallen 3.3 percent this year.

The Bank of Canada cut its growth forecast for 2013 to 1.5 percent from 2 percent as “a material degree of slack has re- emerged in the Canadian economy,” policy makers with the bank said today. The bank also held the benchmark interest rate at 1 percent for the 21st consecutive meeting, as expected by all 23 economists surveyed by Bloomberg.

To contact the reporter on this story: Eric Lam in Toronto at elam87@bloomberg.net

To contact the editor responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net

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