CANADA STOCKS-TSX slips after ECB rate cut, commodity weakness

Reuters

* TSX falls 26.84 points, or 0.20 percent, to 13,353.57

* Six of 10 main index sectors decline

* Canadian Natural, Tim Hortons gain after results

By John Tilak

TORONTO, Nov 7 (Reuters) - Canada's main stock index

retreated on Thursday after the European Central Bank trimmed

interest rates, weighing on commodity prices and natural

resource stocks.

Investors also processed mixed data that showed U.S.

economic growth accelerating in the third quarter but consumer

spending expanding at the slowest rate in two years.

The ECB, which cut interest rates to a new record low, said

it would prime banks with liquidity into 2015 to prevent the

euro zone's recovery from stalling as inflation tumbles.

"The reduction of interest rates by the ECB surprised

everyone," said John Ing, president of Maison Placements Canada.

"It reminds investors that we're still in very uncertain

territory," he said.

The Toronto Stock Exchange's S&P/TSX composite index

was down 26.84 points, or 0.20 percent, at 13,353.57.

Six of the 10 main sectors on the index were in the red.

Shares of energy companies led the decline, falling more

than 1 percent, as oil prices dropped.

Suncor Energy Inc gave back 1.5 percent to C$36.13,

and Encana Corp dropped 2.1 percent to C$19.03.

But the losses were somewhat capped by a 1.3 percent jump in

Canadian Natural Resources Ltd after the oil producer's

third-quarter profit more than tripled as a result of record

quarterly production and strong oil prices.

Two of Canada's top retailers also posted results.

Tim Hortons Inc reported an 8 percent rise in

quarterly profit as same-store sales improved slightly in the

United States, pushing its shares up 0.4 percent to C$62.83.

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Canadian Tire Corp Ltd recorded a

stronger-than-expected 11 percent rise in quarterly profit. The

stock was down slightly.

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