TORONTO (Bloomberg) - Canadian stocks fell the most in a month, led by commodity producers, as metals and oil prices retreated and after Dubai's attempt to reschedule its debt rattled investors.

Suncor Energy Inc., Canada's biggest energy company, and Teck Resources Ltd., the largest base-metals producer, dropped. Royal Bank of Canada, the biggest lender, slid on concern that Dubai World's pursuit of a "standstill" agreement from creditors may undermine confidence in the global financial system's recovery. Bombardier Inc., the world's third-largest maker of commercial aircraft, lost 3.8 percent after saying it will slow production and cut jobs due to weak demand.

The Standard & Poor's/TSX Composite Index fell 200.1 points, or 1.7 percent, to 11,436.8 at 4.15 p.m. in Toronto for the biggest drop since October 28. Asian and European stocks fell, while the US dollar slid to a 14-year low against the yen. US stock exchanges were closed for the Thanksgiving holiday.

"Canadian stocks are falling in sympathy with world markets," said John Kinsey, who helps manage about C$800 million ($754.2 million) at Caldwell Securities Ltd. in Toronto. "Commodities prices are down and they make up a large chunk of our market."

Canada's equity benchmark has risen 4.8 percent this month after world leaders said that fiscal and monetary stimulus will continue.

The S&P/TSX rose yesterday after US unemployment claims, consumer spending and new home sales signaled an economic recovery and Russia's central bank said it would add Canadian dollars to its reserves.

Dubai World, the government investment company burdened by $59 billion of liabilities, roiled markets around the world yesterday by seeking to delay repayment on much of its debt. Stocks, bonds and currencies fell across developing countries. The MSCI Emerging Markets Index of stocks dropped 2.1 percent.

An index of financial companies in the S&P/TSX lost 1.6 percent. Royal Bank of Canada dropped 2.3 percent to C$55.88, while Bank of Montreal dropped 1.2 percent to C$52.65.

Canadian banks should remain conservative with capital when it comes to considering dividend increases, said Julie Dickson, the country's banking regulator.

"I think that until we get a little more certainty there, being conservative in terms of capital is a very good idea," Ms Dickson said in an interview aired today on Business News Network television.