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TSX slides on weak US results

TORONTO (Reuters) - Toronto's main stock index skidded yesterday as weak US economic data and earnings results heightened worries about a slow recovery, and pushed down heavily weighted resource issues.

Toronto's slide tracked a sharp decline by US stocks, which tumbled in part after consumer sentiment fell to nearly a one-year low, highlighting the sluggishness of the economic recovery.

As well, weak energy costs pushed US consumer prices down for a third straight month in June. "You get a little bit of enthusiasm going here and all of a sudden you get squashed because consumer sentiment in the US fell to an 11-month low," said Fred Ketchen, director of equity trading at ScotiaMcLeod.

"That tells you there's not a lot of confidence out there."

Suncor Energy Inc was down 1.6 percent at C$32.33, dragged lower as oil fell to around $76 a barrel on jitters about the health of the economic recovery.

Barrick Gold fell 1.9 percent to C$44 as US gold dropped on weak inflation data and a sell-off in equities prompted fund selling.

"Fears are still there about double dips," said Mr. Ketchen, referring to the sell-off in commodities.

The Toronto Stock Exchange's S&P/TSX composite index ended down 172.12 points, or 1.47 percent, at 11,569.65, with nine of its 10 main sectors lower. The small healthcare group rose 2.7 percent. For the week, the TSX was down 0.01 percent.

The worries helped to push down each of the index's key energy, materials and financial groups by more than 1.5 percent.

Also weighing on investor sentiment were disappointing quarterly revenue from US bellwether General Electric, as well as Bank of America and Citigroup.

Canadian banks got caught up in the sour mood, with Royal Bank of Canada down 1.7 percent at C$54.09, while Bank of Nova Scotia fell 1.4 percent at C$51.71.