Toronto stocks fell sharply Wednesday as a surging Canadian dollar hit financial and industrial stocks. At midday, the S&P/TSX composite index was down 41.78 points, or 0.46%, at 8,978.91. Volume was 126.1 million shares.

Seven of the TSX index’s 10 main groups were lower, led by a 1% dip in the materials group and a 0.73% fall in the heavily weighted financial group. Industrial issues slipped 0.81%.

The Canadian dollar shot up by more than a 1¢ on foreign exchange markets after reports showed Canada’s trade surplus grew in November while the trade deficit in the U.S. widened.

The loonie was up 1.27¢ US at US83.27 cents in early afternoon trading. The U.S. dollar also traded lower against the euro.

Canada’s trade surplus for the month hit $7.3 billion, the third highest since 1997 and slightly less than the record of $7.5 billion set in June 2004.

The U.S. Commerce Department reported that the U.S. trade deficit grew to a new high of US$60.3 billion in November, up 7.7% from the previous record of US$56 billion set in October.

Among financial issues, Bank of Montreal fell20¢, or 0.35%, to $56.80 and CIBC gave up 64¢, or 0.9%, to $70.70.

Energy stocks bucked the negative trend with a 0.41% rise as crude oil prices remained above $45.00 a barrel.

New U.S. government inventory data showed a big drawdown in U.S. crude stocks last week. Oil prices fell 28¢ to US$45.40 a barrel, after rising briefly.

On the TSX, Canadian Natural Resources added 84¢, or 1.7%, to $50.19 and Precision Drilling climbed 70¢, or 0.95%, to $74.30.

In New York, stocks were slightly higher at midday.

Intel jumped 3% to $23.15, after it reported its highest-ever quarterly revenue late on Tuesday and boosted its budget for factory and investments by more than US$1 billion.

The Dow Jones industrial average was up 25.65 points, or 0.24%, at 10,581.20. The S&P 500 Index was up 0.90 of a point, or 0.08%, at 1,183.89.

The tech-heavy Nasdaq composite index was up 3.08 points, or 0.15%, at 2,082.70.