US Downturn effects Canadian Market

Canadian Stocks Drop for a 2nd Week on U.S. Growth Concerns

" Canadian stocks had a second straight weekly decline, paring the Standard & Poor's/TSX Composite Index's gain for the year to 13 percent, on concern that a cooling U.S. economy will curb demand for Canadian exports. "

"Prospects for the Canadian market depend on how much the U.S. economy is dragged down as the housing market extends a slump, said Marc Lalonde, who oversees $1.1 billion at Louisbourg Investments Inc. in Moncton, New Brunswick. Prices of energy and other commodities will be another swing factor in the market. "

``We've had a good run this year,'' he said. ``You have to watch housing,'' though, because raw materials such as copper for construction ``account for almost 45 percent of the Canadian market.''

"Exports accounted for 38 percent of Canada's $1 trillion economy last year, and 84 percent of the country's merchandise exports went to the U.S., the trade department said in June. Commodities comprise more than half of the exports. "