TORONTO, Sept. 26 (Xinhua) -- The Canadian stock market closed lower Monday as hopes faded that a compromise could be reached in the U.S. budget talk in time to prevent the shutdown of partial government services.
The Toronto Stock Exchange's benchmark S&P/TSX Composite Index dropped 56.89 points, or 0.49 percent, to a two-week low of 12,787. 19.
The Canadian dollar closed flat at 0.9705 U.S. dollars as Canada's economic growth in July came in better than expected.
Statistics Canada reported that the economy grew by 0.6 percent in July, rebounding from a 0.5 percent decline in June. The rise in the country's gross domestic product in July, which was one of the biggest in two years and among the strongest since the recession, was better than the economists' expectations.
All sectors on the main index for the Toronto Stock market moved down as investors worried the approaching deadline of the U. S. budget talk would result in cutting to non-essential government services.
An even more worrisome deadline comes up on Oct. 17, when the U. S. government hits its debt limit.
Worries about the economic impact of a U.S. government shutdown depressed oil prices and pushed energy sector on the Canadian market down by 0.5 percent. Suncor Energy lost 1.3 percent to 36. 83 Canadian dollars (about 35.73 U.S. dollars) a share.
The metals and mining sector was down 1.22 percent. Teck Resources shed 1.5 percent to 27.68 Canadian dollars (26.85 U.S. dollars).
The information technology sector was also a drag as BlackBerry continued to lose, down 2.2 percent to 8.10 Canadian dollars (7.86 U.S. dollars) a share.