TORONTO (Reuters) - Toronto's main stock index sank one percent yesterday as investor confidence was again rattled by worries over fallout from European sovereign debt troubles.

The retreat came as spot gold prices were slightly softer. Top names on the downside included Barrick Gold Corp. down 3.7 percent at C$37.04, and Goldcorp Inc off 3.4 percent at C$36.88.

Suncor Energy Inc. dropped 1.9 percent to C$31.28, even as oil prices rose nearly one percent to above $71 a barrel after three sessions of losses.

Steve Ibel, institutional equities trader at Beacon Securities in Halifax, Nova Scotia said the market was generally worried about the fiscal health of some smaller euro zone countries.

"It's basically concern over European debt, with Greece, Portugal and Spain namely," said Mr. Ibel.

"Until we get some more clarification with what's going on in Europe we could see (North American) markets going sideways, or going lower."

The Toronto Stock Exchange's S&P/TSX composite index finished the day down 107.82 points, or 0.96 percent, at 11,115.3, with all 10 of its main groups lower.

On the upside were Teck Resources, up 0.9 percent at C$34.50, and Royal Bank of Canada, which climbed 0.2 percent to C$53.06.

Bruce Latimer, a trader at Dundee Securities, said people are in no rush to put money to work

"It's kind of like catching-a-knife theory," he said of investors' cautious tone.

Market watchers have said that risk aversion swept through global markets from January onward as China moved to tighten monetary policy, US President Barack Obama commented about stricter oversight of Wall Street banks, and concerns grew about the fiscal health of some European countries.

Mr. Latimer said that since the middle of January the market has faded in the last couple of hours of trading and that has helped to undermine confidence further.

"It doesn't give people a good feeling to stand in there and buy stocks when they see the market fading at the end of the day," he said.