Stock mar­kets rise, loonie drops, com­modi­ties slide

Cape Breton Post - - CLASSIFIEDS / BUSINESS - MAR­KETS BY PETER HEN­DER­SON

The Toronto stock mar­ket was higher Tues­day on a day marked by volatil­ity and a sell-off in com­modi­ties.

The S&P/TSX com­pos­ite in­dex closed up 30.93 points at 14,624.50 af­ter fall­ing more than 200 points ear­lier in the ses­sion.

Stocks in New York also re­bounded af­ter open­ing the day with sig­nif­i­cant losses.

The Dow Jones in­dus­trial av­er­age closed up 93.33 points at 17,776.91 af­ter be­ing down more than 200 points, while the Nas­daq rose 5.52 points to 4,997.46 af­ter ear­lier shed­ding more than 90 points. The S&P 500 fin­ished 12.58 points higher at 2,081.34 af­ter slid­ing nearly 25 points in early trad­ing.

Sun­day's “no” vote in the Greek debt ref­er­en­dum plunged the coun­try's fu­ture in the euro into un­cer­tainty, yet in­vestors are now ad­just­ing their ex­pec­ta­tions on the fall­out in world fi­nan­cial mar­kets, ac­cord­ing to Sadiq Ada­tia, chief in­vest­ment of­fi­cer for Sun Life Global In­vest­ments.

“Peo­ple re­al­ized around the same time that what­ever hap­pens with Greece, it's still a re­ally small econ­omy,” he said. “You've still got to worry about the rest of the world and there could be op­por­tu­nity there.”

Com­modi­ties were hit hard, with oil, gold, and cop­per all los­ing value.

The Au­gust con­tract for bench­mark crude ended the day down 20 cents at US$52.33 a bar­rel.

“Peo­ple are start­ing to re­al­ize that sup­ply hasn't di­min­ished, it's ac­tu­ally gone up since we hit $44 oil in Jan­uary,” Ada­tia said. “The next step is down rather than up for oil prices.”

The Au­gust gold con­tract was down $20.60 at US$1,154.30 an ounce, while Septem­ber cop­per fell 9.15 cents to US$2.45 a pound, reach­ing lev­els not seen since Jan­uary.

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