Stocks slide for sixth session

The Torontoand U.S.stock marketsground lower Wednesday amid concerns about Europe's debt crisis as a political deadlock continued in Greece.

TheS&P/TSX composite index closed down29.73 points, or 0.25 per cent,at 11,675.01. It has lost 5.3per cent since last Wednesday.

The Canadian dollar fell below parity, dropping 0.26 of a cent to 99.91 cents US.

In New York, the Dow Jones industrial average fell 97.03 points, or 0.75 per cent,to 12,835.06.

The Nasdaq composite index slid 11.56 points, or 0.39 per cent,to 2,934.71 and the S&P 500 index lost 9.14, or 0.67 per cent,to 1,354.58.

"Fear over the potential for a Greek exit from the euro continues to weigh on most assets," said a commentary from Barclays Capital.

Greek Radical Left leader Alexis Tsipras said Wednesdayhe had failed to forge a coalition that would end the country's post-election deadlock.

Tsipras said he will return the mandate Thursday to President Karolos Papoulias.

The 38-year-old's party was the surprise runner-up of Sunday's national elections, which hammered mainstream politicians but left no party with enough seats in Parliament to govern alone.

The mandate will now pass to the third-placed Socialists. If no coalition deal is reached, new elections will have to be held.

The June crude contract on the New York Mercantile Exchange extended a weeklong slump, closing down 20 centsat$96.81 US a barrel after reaching a 2012 low of $95.77 earlier in the session. The U.S. Energy Department reported crude inventories rose by 3.7 million barrels last week, suggesting weak demand.

The American Petroleum Institute said late Tuesday that crude inventories rose 7.8 million barrels last week while analysts surveyed by Platts, the energy information arm of McGraw-Hill Cos., had predicted an increase of 2.2 million barrels.

Crude falls from $106 US last week

Crude has dropped from $106 last week amid signs the U.S. and European economies may expand less than previously expected this year. Despite the recent sharp pullback in oil prices, some analysts say crude still trades above the level supply and demand fundamentals would suggest.

"Over the past months, stockpiles around the globe have continued to grow as the world's largest producers (the U.S., Saudi Arabia and Russia) continue to pump at or near record levels," energy analyst Richard Soultanian of NUS Consulting said in a report.

"The markets are extremely well supplied and demand, as a result of slow growth in the U.S., recession in Europe and slowing growth in Asia, remains tepid."

July copper fell a penny to $3.66 US a pound.

June bullion prices retreated, sliding $10.30 to $1,594.20 US an ounce.

The euro fell 0.53 per cent to $1.29 US.

European markets closedmixed,with London's FTSE 100 index down 0.44 per cent, Frankfurt's DAX up 0.47 per cent and the Paris CAC 40 down 0.20 per cent.