By Ka Yan Ng
TORONTO (Reuters) - Toronto's main stock index fell hard on Thursday morning as resource stocks were knocked lower by retreating oil and gold prices, while debt worries in Dubai made waves across financial markets.
The price of gold fell from a record high hit earlier as the U.S. dollar rebounded, while oil fell toward $77 a barrel, in line with falls across financial markets.
Global markets were slammed by news of debt problems in Dubai, triggering widespread concern about the once-booming Gulf region's financial health, which added to general nervousness about the state of the world economy.
"This is a center that affects the Persian Gulf. There's a lot of nervousness: Will it spread out there? There's a bit of a scary, psychological effect," said Sal Masionis, stockbroker at Brant Securities.
Masionis also said the TSX has enjoyed a good rally so profit-taking would not be out of the ordinary. Entering the session, the TSX was up about 7 percent on the month.
Oil company Suncor Energy
Banking stocks were among the hardest hit in the wake of the Dubai news. Royal Bank of Canada
At 10:10 a.m. (1510 GMT), the S&P/TSX composite index <.GSPTSE> was down 140.41 points, or 1.21 percent, at 11,496.49. All 10 of the index's main groups were lower.
Volume was expected to be light through the day with U.S. markets closed for the Thanksgiving Day holiday, which may exaggerate stock movements.
(Editing by Peter Galloway)
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