TORONTO - The Toronto stock market was lower in early trading Tuesday as concerns about the European debt crisis punished commodity prices and tech heavyweight Research In Motion (TSX:RIM) lost ground after unveiling its new tablet device. The S&P/TSX composite index was down 22 points to 12,168.6 while the TSX Venture Exchange lost 4.19 1,690.44. The Canadian dollar was down 0.19 of a cent to 97.06 cents US. Research In Motion Ltd. (TSX:RIM) (NASDAQ:RIMM) was down $1.06 to $48.61 after the BlackBerry maker showed off its new PlayBook tablet for the first time on Monday. RIM is set to launch the device early in 2011. On the bright side, the Asian Development Bank raised its forecast for the region’s economic growth this year. And consumer confidence in Germany rose as more people are optimistic about job increases in Europe’s largest economy. But investors continued to be cautious amid a renewed bout of concern over Europe’s government debt crisis after Moody’s Investor Services cut its rating on Anglo Irish Bank Corp. by three notches. Unconfirmed market rumours say that Moody’s is also preparing a downgrade of Spain’s debt was also weighing on markets. "Sovereign debt worries are once again adding to traders’ woes with the threat of a credit downgrade for Spain by Moody’s," said Ben Critchley, sales trader at IG Index in London. "This together with the profit taking ahead of the month and quarter end could lead to a broad-based sell-off that could leave markets in a state of limbo for some time yet," he added. The energy sector was down 0.3 per cent as the new round of concern raised questions about demand for crude, helping push the November oil contract on the New York Mercantile Exchange down 30 cents to US$76.22 a barrel. Cenovus Energy (TSX:CVE) shed 12 cents to $28.92. Traders also awaited the latest U.S. supply figures for clues about the strength of demand for crude. Inventories likely rose 2.2 million barrels last week, according to analysts surveyed by Platts, the energy information arm of McGraw-Hill Cos. The base metals component was mixed as the December copper contract on the Nymex was off a cent at US$3.59 a pound. Lundin Minuing (TSX:LUN) gained nine cents to $5.01 while HudBay Minerals (TSX:HBM) declined 41 cents to $14.44. Gold stocks were also weak as bullion prices backed off from Monday’s latest record close, down $2.70 to US$1,295.90 an ounce. Gold has closed at a series of record highs during September as investors look for a hedge against fears of inflation and U.S. currency weakness. Kinross Gold (TSX:K) faded 24 cents to $19. The defensive utilities sector led advancers, up 0.25 per cent. Investors also looked to a key report on consumer confidence in the U.S. being released later in the morning. The U.S. Conference Board is expected to say American consumer confidence dipped slightly this month compared with August. Economists polled by Thomson Reuters forecast the consumer confidence index dipped to 52.5 from 53.5 last month. It takes a reading of 90 to indicate a strong, healthy economy. New York's Dow Jones industrial average moved 37 points lower to 10,775. The Nasdaq composite index fell 14.06 points to 2,355.71 while the S&P 500 index lost 4.35 points to 1,137.8. In other corporate news, Nexen Inc. (TSX:NXY) said Monday that its Appomattox project in the Gulf of Mexico has more than 250 million barrels of oil equivalent. The company made the estimate of the deep water project after drilling an exploration well and two appraisal sidetracks. Its shares were off eight cents to $20.58. Drug developer Endo Pharmaceuticals Holdings Inc. said Tuesday it is buying Qualitest Pharmaceuticals for US$1.2 billion in a move to diversify its business and strengthen its position in the generic and pain drug markets. Toyota Motor Corp., the world’s biggest automaker, is getting into the minicar market. The company said Tuesday that it would expand its product line to include minivehicles made by subsidiary Daihatsu Motor Co. starting in stages from autumn 2011 in Japan. Earlier in Asia, Japan’s Nikkei 225 stock average slid 1.1 per cent with exporters hurt by the yen’s sustained strength. Investors are closely monitoring the Japanese currency, which authorities may try to weaken again soon after the Japanese central bank earlier this month bought dollars to weaken the yen for the first time in six years. The Nikkei financial daily reported that the central bank will discuss further monetary easing when it meets next week. South Korea’s Kospi lost 0.3 per cent, Hong Kong’s Hang Seng retreated one per cent and he Shanghai Composite Index fell 0.6 per cent. London's FTSE 100 index added 0.03 per cent, Frankfurt's DAX rose 0.29 per cent while the Paris CAC 40 index ticked up 0.3 per cent.

Source