Toronto stocks finished lower on Tuesday as financial issues were hit by more worries over the health of the U.S. economy.

The Canadian dollar closed down 1.2¢ to US98.78¢ after the Bank of Canada cut its key rate by a quarter-point to 4.25% and left the impression more cuts are in the pipeline to shield the economy from a U.S. downturn.

The S&P/TSX composite index closed down 77.55 points, or 0.57%, at 13,579.62.

Six of the 10 TSX main groups ended lower.

Financial shares slid 1.1%, with CIBC down $2.96, or 3.4%, at $84.75.

Bank of Montreal shares dropped $1.64, or 2.7%, at $59.96.

Laurentian Bank of Canada was down $1.16, or 2.9%, at $39.44 after its fourth-quarter earnings missed expectations.

Materials issues fell 0.4%, while industrial metals prices fell on worries over slowing demand.

On the upside, Agrium rose $1.82, or 3%, to $62.75 a day after announcing it will buy U.S. agricultural products supplier UAP Holding.

Biovail helped lift the health care sector 0.5% after the company came to an agreement with Watson Pharmaceuticals that will delay a generic version of Biovail’s Cardizem LA heart drug.

Biovail was up 35¢, or 2.4%, at $14.93.

The junior S&P/TSX Venture composite index slipped 22.96 points, or 0.84%, to finish at 2,694.44.

In New York, stocks fell for a second straight day on concerns about the impact of the credit crisis on bank profits and the wider economy.

The Dow Jones industrial average ended down 65.84 points, or 0.49%, at 13,248.73. The S&P 500 dropped 9.63 points, or 0.65%, to 1,462.79. The Nasdaq composite index closed off 17.30 points, or 0.66%, at 2,619.83.