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TSX slides lower on US figures

TORONTO (Reuters) - Toronto's main stock index ended lower yesterday after weaker-than-expected US economic data sparked investor jitters and underscored the fragility of the global recovery.

Data showed new US jobless claims scaled a nine-month high last week and Mid-Atlantic factory activity contracted in August for the first time in more than a year.

"Once again it's weak data coming not so much from Canada but from the US," said Elvis Picardo, analyst and strategist at Global Securities in Vancouver. "That's again raised concerns about the extent of slowing growth in the US. Those concerns tend to spillover to the rest of the world."

The Toronto Stock Exchange's S&P/TSX composite index ended the session down 70.9 points, or 0.6 percent, at 11,710.18.

In Canada, data showed wholesale trade for June and the leading indicator for July came in lower than expected, which did not help to lift investor spirits.

Eight of the index's 10 main groups fell into the red, led by weakness in financials and energy.

Among key decliners were Toronto-Dominion Bank, off 1.6 percent at C$70.15, and Suncor Energy, down 0.9 percent at C$32.99.

The TSX index may have fallen further had it not been for strong gold-mining stocks, which got a lift from higher bullion prices.Barrick Gold rose 0.4 percent to C$46.67.

Also offsetting the general weakness was takeover target Potash Corp., the world's biggest fertiliser producer, which was up 2.1 percent at C$154.86 as investors held hope for a higher offer to emerge after pushing the stock up some 30 percent in the past three days. Anglo-Australian miner BHP-Billiton embarked on a $39 billion hostile attempt to take over Potash this week.