Toronto stocks finished sharply lower on Monday, weighed down by weak commodity prices and investor jitters amid more bad news in the banking sector.

The S&P/TSX composite index fell 182.12 points, or 1.35%, to end at 13,348.24.

All 10 of the TSX main sectors were lower, with materials shares leading the way, shedding 4%, hit by a gold-price drop as the U.S. dollar steadied against the euro.

The financials sector slid 0.8% after National Bank of Canada said it expected to take a fourth-quarter charge on holdings in non-bank asset-backed commercial paper, joining other Canadian banks.

National Bank said it will pre-tax charge of $575 million. But its shares rose 77¢, or 1.5%, to $51.80.

Royal Bank of Canada shares fell $1.08, or 2.1%, to $50.06.

The sector was also hurt by a brokerage downgrade of U.S. bank Citigroup.

In the materials group, Barrick Gold fell $1.57, or 3.9%, to $38.27, and Goldcorp slipped $1.19, or 3.8%, to $30.13.

The junior S&P/TSX Venture composite index fell 82.37 points, or 2.8%, to end at 2,854.83.

The Canadian dollar fell more than a full cent on Monday, a day after the head of the Bank of Canada David Dodge increased the possibility of an interest rate cut. Dodge was in Africa for a meeting of the Bank for International Settlements.

The loonie dropped 1.14¢ to close at US$1.0155 on foreign currency markets.

The Bank of Canada is due to make its next decision on interest rates on December 4. Prior to that, the central bank will get the October reading on inflation Tuesday morning.

On Wall Street, U.S. stocks slumped after a broker downgrade of banking gain Citigroup sparked concerns that more mortgage losses may lie ahead, compounding doubts about the outlook for the U.S. economy.

The world’s biggest reinsurer, Swiss Re, also fed worries that losses from the global credit crisis may widen, with its announcement of a US$1.07 billion writedown.

The Dow Jones industrial average was down 218.35 points, or 1.66%, to end at 12,958.44. The S&P 500 was down 25.47 points, or 1.75%, at 1,433.27. The Nasdaq composite index was down 43.86 points, or 1.66%, at 2,593.38.