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CANADA STOCKS-TSX eases in muted response to U.S. bank results

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(Updates to mid morning)

* TSX down 13.84 points, or 0.1 pct, at 12,220.11

* Financials, materials shares down; energy shares up

By Claire Sibonney

TORONTO, Oct 12 (Reuters) - Toronto's main stock index wasslightly lower on Friday morning as negative market reaction toquarterly results from a pair of major U.S. banks added toprevailing concerns about slowing global economic growth.

Shares of JPMorgan Chaseand Wells Fargo & Co

both fell after they released their results, even thoughJPMorgan posted record profits, prompting Canadian financials tofollow suit, dropping 0.2 percent.

Bank of Nova Scotiawas down 0.3 percent atC$53.31, and Toronto-Dominion Bankwas 0.2 percent lowerat C$80.85.

"Everybody is focusing more on the uncertainty created notonly by Europe, but the U.S. fiscal cliff, the upcomingelections in November, all of those I think are larger than theearnings expectations," said John Ing, president of MaisonPlacements Canada.

Helping to push the index lower was a 0.4 percent drop inits materials sector on weak metals and grain prices.

Barrick Gold

dropped 1 percent to C$38.65, andPotash Corp

was down 0.9 percent to C$41.04.

At 10:33 a.m. (1233 GMT), the Toronto Stock Exchange'sS&P/TSX composite index

was down 13.84 points, or 0.1percent, at 12,220.11.

Energy shares limited the fall, edging up 0.1 percent asU.S. crude futures advanced.

The rise in oil prices, however, was dampened by a reportfrom the International Energy Agency (IEA) that said amplesupply from North America and Iraq, coupled with decliningglobal demand, could lead to an easing of oil prices over thenext five years.

Canadian Natural Resourcesrose 0.9 percent toC$30.28, and Suncor Energyclimbed 0.2 percent toC$32.39.

Also helping sentiment, Thomson Reuters/University ofMichigan data showed U.S. consumer sentiment rose unexpectedlyin October to its highest level in five years as optimism aboutthe overall economy improved.

($1=$0.98 Canadian)(Editing by Peter Galloway)

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

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