TSX takes bruising

The Toronto stock market was sharply lower to close out the week, amid doubts as to when Greece will get a much-needed bailout in order to avoid bankruptcy.

The S&P TSX Composite Index closed Friday off 108.52 points to 12,389.42

The Canadian dollar lurched lower by 0.73 cents to 99.78 U.S.,below the heights above parity the loonie had enjoyed much of the week.

Sentiment was also depressed Friday morning by data showing that China's trade suffered its biggest decline in January since the 2008 financial crisis in a new sign of weak global demand and a slowing domestic economy.

China is a major buyer of iron ore, oil and other commodities and industrial components, meaning any downturn could hurt suppliers such as Canada, Australia, Brazil and South Africa.

Commodity prices retreated following the data.

The base metals sector led losers, as the March copper contract in New York dropped 12 cents to $3.86 U.S. a pound. Copper prices have charged ahead from around $3.43 U.S. at the first of the year, reflecting a string of positive economic data from the U.S. and hopes that the Chinese government would be able to relax lending requirements at banks to encourage economic growth.

China is the biggest consumer of the metal.

Teck Resources fell 50 cents to $40.29 while First Quantum Minerals dropped 61 cents to $21.22.

Uranium giant Cameco Corp. raised its net profits by nearly a third to $265 million or 67 cents a share on higher prices and production. Revenue jumped 45% to $977 million. Its shares dipped 22 cents to $23.14.

The energy sector fell as Suncor Energy lost 76 cents to $33.83 and Canadian Natural Resources declined 59 cents to $37.70.

A stronger American dollar also weighed on April gold. Goldcorp Inc. faded 62 cents to $45.74.

A stronger greenback usually helps depress commodity prices, which are denominated in U.S. dollars, as it makes oil and metals more expensive for holders of other currencies.

The financials sector was also a major weight, while Bank of Montreal gave back 47 cents to $58.15 and Manulife Financial was down 14 cents to $11.74, extending losses from Thursday after the insurer delivered a quarterly loss.

The telecom sector was weak as Telus reported that fourth-quarter profits increased 4.9% to $237 million or 76 cents a share, two cents less than analyst expectations. Revenue increased 5.3% to $2.69 billion from $2.55 billion and its shares fell 91 cents to $56.30.

The industrials sector fell as Air Canada shares continued to take a beating, down seven cents or 6.1% to $1.08 as it said it has reached a tentative agreement with its mechanics, baggage handlers, and cargo agents.

The deal came a day after the union representing the airline's pilots called for a strike vote and the carrier said it lost $249 million last year, leading to a 12% slide in the stock price.
There was some major acquisition activity in the resource sector.

Pulp producer Fibrek Inc. has struck a friendly deal to be acquired by Mercer International Inc. The Montreal-based pulp maker says the Mercer cash and share bid tops a $130 million offer by Resolute Forest Products, the former AbitibiBowater. Fibrek shares surged 17 cents or 15% to $1.30.

On matters economic, Statistics Canada reported that this country's merchandise trade surplus improved sharply to $2.7 billion in December from a revised $1.2-billion level in November.

Expectations for the December surplus had been for deterioration to $0.8 billion.

ON BAYSTREET

The TSX Venture Exchange fell 11.27 points to 1,653.55, while the Nasdaq Canada index dipped 5.99 points to 418.48

All 14 Toronto subgroups spent the entire session in the red, weighed mostly by global base metals, down 2.2%, metals and mining, down 1.7%, and consumer staples, stumbling 1.4%.

ON WALLSTREET

In New York, stocks have largely glided higher for most of 2012, but as investors grew concerned over Greece's ongoing debt drama, all three indexes dropped Friday, pushing them into negative territory for the week.

The Dow Jones Industrials shed 89.23 points, to greet the closing bell at 12,801.20, falling 0.5% for the week.

The S&P 500 faded 9.31 points to 1,342.64, losing 0.5% for the week, while the tech-rich Nasdaq slashed 23.35 points to 2,903.88, pushing the tech-heavy index down 0.06% for the week.

All three indexes still remain significantly higher for the year. The Dow, S&P, and Nasdaq are up 4.7%, 6.8% and 11.5% respectively.

Throughout the trading day Friday, the selling in the market was broad. Oil, gold and copper fell about 1%.

All 30 stocks in the Dow moved negative, with aluminum maker Alcoa and chemical manufacturer DuPont losing the most ground.

Alcatel-Lucent shares spiked 13%, after the telecom equipment maker posted an annual profit for 2011 -- its first since Alcatel and Lucent merged in 2006.

LinkedIn shares jumped almost 18% Friday, a day after the professional networking site's fourth-quarter profit surged 30% and revenue more than doubled.

Barclays shares moved up 1.6%. The London-based bank posted an unexpected loss for the fourth quarter, but it also cut its bonus pool by 25%. For employees at the investment bank, Barclays Capital, bonuses fell by almost a third and are capped at £65,000.

Shares of Activision Blizzard, maker of World of Warcraft and Call of Duty, slipped nearly 3% even after the game maker beat fourth-quarter profit and sales estimates.

Nuance Communications' shares fell 13%, after the software developer reported earnings that missed analysts' expectations.

Shares of First Solar plunged after the company announced a delay in funding for a massive solar farm it plans to build near Los Angeles.

Parent of the New York Stock Exchange NYSE Euronext beat earnings' expectations Friday that pushed the stock up 4.5%. The company's CEO outlined the future of the exchange after its failed takeover by Deutsche Borse.

The fresh bout of worries over Greece came after euro-zone finance ministers called the new Greek austerity deal into question, saying it does not go far enough.

The finance ministers said they would need to see more spending cuts before signing off on a new €130-billion bailout, which is key to the debt-laden country making its payment on a €14.5-billion bond redemption next month and avoiding default.

Specifically, Juncker said the reform package needs to be approved by the Greek parliament this weekend, and Greece's leaders need to pledge they'll continue to implement the measures after elections in April. He also said that Greece must cut an additional €325 million from its "structural expenditures" in 2012.

If Greece meets those conditions, a bailout package could be signed as early as next week, when euro-zone finance ministers are due to meet again.

Meanwhile, Greece is also working to finalize a deal with its private-sector creditors to write down a portion of its debt.

On the economic front, the December trade deficit for the U.S. expanded to $48.8 billion, from $47.1 billion U.S. the prior month.

Consumer sentiment dropped more sharply than expected in February. The February edition of the Michigan Consumer Sentiment Index fell to 72.5 from 75 last month. The index was expected to come in at 74.

The Treasury Department reported a smaller budget deficit than expected of $27.4 billion U.S. for January. Analysts had expected the budget report to show a deficit of $40 billion U.S.

Treasury prices for the 10-year note climbed, lowering yields to 1.97% from Thursday's 2.05%. Treasury prices and yields move in opposite directions.

Oil for February delivery fell 88 cents to $98.95 U.S. a barrel.

Gold futures for April delivery fell $15.70 to $1,723.30 U.S. an ounce.