Wires

CANADA STOCKS-TSX hits 1-week low on growth fears ahead of earnings

(Updates to midday)

* TSX down 111.22 points, or 0.9 pct, at 12,307.77

* All 10 sectors lower in broad decline

By Claire Sibonney

TORONTO, Oct 9 (Reuters) - Canada's main stock index hit itslowest level in over a week on Tuesday, tracking a fall in worldmarkets, on caution over the upcoming earnings season andprospects for global growth.

All 10 of the index's sectors fell on a wave of negativesignals, including a report from the International Monetary Fundthat said the global economic slowdown is worsening. The IMF cutits growth forecasts for the second time since April.

Commodity and financial shares were among the hardest hit.Barrick Gold

dropped 2.8 percent to C$39.96, SuncorEnergywas down 0.3 percent to C$32.91, and Royal Bankof Canadalost 0.6 percent to C$57.10.

"I think the IMF (report) is what people are payingattention to. But it struck me as being a little bit late ...current economic news coming out of the U.S. has been a littlebit better rather than worse," said Ian Nakamoto, director ofresearch at MacDougall, MacDougall & MacTier.

Europe also kept investors on edge as uncertainty about whenSpain will apply for a bailout worried markets as did concernsabout Greece's debt load.

At 12:43 p.m. (1643 GMT), the Toronto Stock Exchange'sS&P/TSX composite index

was down 111.22 points, or 0.9percent, at 12,307.77. Earlier, the TSX hit its lowest levelsince Sept. 28.

The U.S. quarterly earnings season will get under way laterin the day when Dow component Alcoa Inc

reports after themarket close.

Analysts forecast third-quarter earnings of S&P 500

companies will drop 2.3 percent from the year-before quarter,according to Thomson Reuters data, which would be the first dropin U.S. quarterly earnings in three years.

"I think it's well advertised that earnings are going to beweak," added Nakamoto.

"So even though earnings more than likely will be down, it'sa matter of how far down have investors brought share prices andwhat sort of guidance are they looking for."

($1=$0.98 Canadian)

(Reporting by Claire Sibonney; editing by Peter Galloway andAndrew Hay)

((claire.sibonney@thomsonreuters.com)(+1 416 941 8142)(ReutersMessaging: claire.sibonney.reuters.com@reuters.net))

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