The benchmark index of the Toronto Stock Exchange plummeted by more than 300 points on Thursday, as disappointing economic data from south of the border dampened prospects for a speedy recovery of the export-dependent Canadian economy.

The S&P/TSX composite index tumbled 323.20 points, or 2.8%, to close at 11,071.76, its lowest level in more than three weeks. All 10 main groups on the TSX incurred losses on Thursday.

Materials stocks led the plunge, finishing down 4%, while the sub-gold index fell 3.7%.

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery shed US$8.60, or 0.9%, to end at US$1,000.70 an ounce.

Barrick Gold Corp. finished down $1.33, or 3.3%, at $39.21, while Goldcorp Inc. fell 3.4% to $41.50.

Iamgold Corp. tumbled 6.7% to $14.12 and Red Back Mining Ltd. plummeted 7.7% to close at $11.11.

Also lower was Potash Corp., down $3.24, or 3.3%, to $93.88.

The energy group also dropped on Thursday, ending down 3.5%, despite small gains in oil futures. Crude futures for November delivery edged up 21 cents, or 0.3%, to US$70.82 a barrel on the New York Mercantile Exchange.

Shares of Suncor Energy Inc. tumbled $1.66, or 4.4%, to $35.74.

Canadian Natural Resources Ltd. fell 3.4% to $69.81 and Nexen Inc. retreated by 4.2% to $23.31.

EnCana Corp.’s stock shed $1.90, or 3.1%, to end at $60.10.

Financial stocks fell 2.5% during Thursday’s trading.

Shares of Royal Bank of Canada gave back $1.41, or 2.5%, to close at $56.14.

Toronto-Dominion Bank’s stock tumbled 3.7% to $66.70, and Bank of Montreal fell 2.2% to $53.00.

Also down was Manulife Financial Corp., off 2.7% to $21.90, and Sun Life Financial Inc., down 4.1% to $32.17.

Junior stocks also finished with hefty losses. The S&P/TSX Venture index closed at 1,250.28, down 26.93 points, or 2.1%.

The Canadian dollar incurred a hefty drop as well, shedding US1.19¢ to close at US92.21¢.

In New York, U.S. equities also tumbled as economic data revealed that initial claims for U.S. unemployment benefits rose last week for the first time in four weeks.

In addition, an index gauging U.S. manufacturing activities fell in September following strong performance the previous month.

The Dow Jones industrial average fell 203 points, or 2.1%, to end at 9,509.28, its lowest level in more than three weeks.

The S&P 500 index declined 27.23 points, or 2.6%, to close at 1,029.85.

The Nasdaq composite index shed 64.94 points, or 3.1%, to end at 2,057.48.

IE