TSX, Dow shed more than 200 points

TORONTO • North American markets delivered a “dose of reality” to investors Thursday, with the S&P/TSX composite index and the Dow Jones industrial average both plunging well over 200 points.

The Toronto market lost 226.97 points to 14,893.57, led by declines in energy and financial stocks.

The big drop is the fifth straight decline for the Canadian market and takes the TSX below 15,000 for the first time since late June. However, the S&P/TSX composite is still up nearly 9% this year.

“Investors in Canada, over the near term have, become complacent because the Canadian market has outperformed,” said Brian Belski, chief investment strategist for BMO Capital Markets.

The loonie fell US0.41¢ to US90.03¢, pressured by lacklustre commodity prices. The November crude oil contract dipped US27¢ to US$92.53 a barrel, while December gold bullion added US$2.60 to US$1,221.20 an ounce and December copper fell US2¢ to US$3.03 a pound.

The sell-off was even worse on Wall Street, with indexes ending the day with the steepest drop in two months. The Dow fell 264.26 points to 16,945.80, while Nasdaq plunged 88.47 points to 4,466.75 and the S&P 500 index lost 32.31 points to 1,965.99.

Financial stocks were among the biggest decliners on the Toronto exchange, down 2.18%. Of the country’s five biggest banks, Canadian Imperial Bank of Commerce suffered the biggest loss; its shares took back $2.43, or 2.3%, to $101.53.