RTTNews - Resource stocks have moved sharply lower on Wednesday to drag Toronto's main index nearly 3% to the downside. The market has followed the lead of stocks in the U.S. and Europe.

The S&P/TSX Composite Index has dropped 317.08 points or 2.99% to 10,271.71. If the losses hold, the index will finish at a weekly low.

Mining stocks have dropped 5.5% as copper moved sharply lower on the Comex. Teck Cominco (TCK.B.TO) has dropped 7.7%, HudBay (HBM.TO) has slipped 6.1% and First Quantum (FM.TO) is down 3.3%.

Energy stocks are down 4.9% as crude oil has dropped near $66 per barrel in NYMEX trading. Canadian Oil Sands (COS.UN.TO) has lost 6.2%, Canadian Natural Resources (CNQ.TO) is down 6.1%, Suncor (SU.TO) has dropped 5.9% and Encana (ECA.TO) is down 4.25%.

Materials stocks have dropped 4.7% as Agrium (AGU.TO) is down 4.9%. The fertilizer maker reaffirmed its offer to acquire CF Industries Holdings(CF) for a price of $40 in cash and one Agrium share for each CF share and extended the offer deadline to June 22. Shares are down 4.9%.

Gold stocks have dropped 4.5% to near $960 an ounce on the Comex. Several stocks in the sector were also hindered by analyst downgrades.

NovaGold (NG.TO) has plunged 14.2% after the stock was downgraded to Underperform from Sector Perform by RBC Captial Markets.

Kinross Gold (K.TO) has declined 7.2% after the shares were downgraded to Neutral from Overweight at JP Morgan.

Barrick Gold (ABX.TO) has dropped 2.7% despite being upgraded to Outperform from Sector Perform by RBC Capital.

Eldorado Gold (ELD.TO) is down 6.3% after the company announced that it has agreed to acquire 57.9 million shares of Sino Gold Mining Ltd from Gold Fields Ltd (GFI) in a private transaction in exchange for Eldorado shares.

In other economic news, Magna International (MG.A.TO) has added 0.5% was upgraded by CIBC to Sector Outperform from Sector Perform.

Gildan Activewear (GIL.TO) was initiated at Underweight by Thomas Weisel. Shares are down 3.4%.

Reitmans (RET.TO) has slipped 1.2% after the stock announced that its first quarter net earnings decreased to C$7.80 million or C$0.11 per share, from C$18.44 million or C$0.26 per share in the year ago quarter.

Bombardier (BBD-B.TO) has lost 7.3% after it reported that its first quarter net income was US$158 million, compared to US$229 million for the same period last year. Earnings per share were US$0.09, compared to US$0.12 last fiscal year.

WestJet (WJA.TO) has dropped 8.7% said its May load factor was down 5.4% and revenue passenger miles dropped 5.8%.

In the U.S., Automatic Data Processing data showed non-farm private employment fell by 532,000 jobs in May following a revised decrease of 545,000 jobs in April. Economists had expected a decrease of about 525,000 jobs compared to the decline of 491,000 jobs originally reported for the previous month.

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