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Royal Bank of Canada's head office in downtown Toronto. RBC is one of the banks that pulled out of the Ombudsman for Banking Services and Investments. (Nathan Denette/NATHAN DENETTE/THE CANADIAN PRESS)
Royal Bank of Canada's head office in downtown Toronto. RBC is one of the banks that pulled out of the Ombudsman for Banking Services and Investments. (Nathan Denette/NATHAN DENETTE/THE CANADIAN PRESS)

At the open: RBC drags down TSX Add to ...

North American stocks fell at the start of trading on Tuesday, with a decline by Royal Bank of Canada weighing on Canada’s benchmark index in particular.

The Dow Jones industrial average fell 15 points or 0.1 per cent, to 13,249. The broader S&P 500 fell 2 points or 0.2 per cent, to 1,417. In Canada, the S&P/TSX composite index fell 93 points or 0.8 per cent, to 12,414.

Royal Bank of Canada was among the biggest hit stocks on the TSX, falling 2.4 per cent after a U.S. regulator sued the bank over alleged illegal futures trades. RBC has denied the charges. RBC also agreed to buy the 50 per cent of Dexia that it doesn’t already own, for $1.1-billion.

However, commodity producers were also weak, following a warning from China’s central bank governor that the world still faces the risk of slipping into a global recession. Suncor Energy Inc. fell 1.4 per cent and Barrick Gold Corp. fell 1.2 per cent.

Among U.S. stocks, McDonald’s Corp. fell 0.5 per cent and Alcoa Inc. fell 1.2 per cent. Among banks, JPMorgan Chase & Co. fell 1 per cent and Bank of America Corp. fell 0.7 per cent.

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