Stock markets closed lower on increased war jitters Thursday. Weakness in financial and gold stocks combined to drive the S&P/TSX index down 23.96 points at 6,536.97 at the close.

Gold issues slid 2.38% despite bullion prices that hovered just under $350 per ounce.

Placer Dome lost 61¢ to $17.04. Barrick lost 75¢ to $23.70,.

The heavily-weighted financial services sector slid 0.79%. CIBC lost 76¢ at $42.77, while Sun Life Financial shed 80¢ to $26.60.

The TSX Venture Exchange gained 9.90 points to 1,017.96.

In New York, fears of the economic repercussions of a war with Iraq swamped good economic news. The U.S. Commerce Department reported its leading economic indicator rose 0.7% in November, the best showing all year.

The Dow Jones industrial average closed down 82.61 points at 8,364.74. The Nasdaq composite index gave up an early lead to drop 7.29 points to 1,354.22. The S&P 500 slipped 5.83 points to 885.29.

The Canadian dollar slipped 0.02 of a cent to US64.40¢.