Wild day on mar­kets

TSX posts triple-digit loss; loonie rises, oil price falls yet again

The Guardian (Charlottetown) - - BUSINESS -

The Toronto stock mar­ket posted a triple-digit loss Wed­nes­day on an­other wild day on global mar­kets as the price of oil fell yet again.

The Toronto Stock Ex­change’s S&P/TSX com­pos­ite in­dex ended the day down 159.13 points at 11,843.11, its low­est close since June 24, 2013, when it fin­ished at 11,836.86.

It was the lat­est in a rarely in­ter­rupted string of down days since the Christ­mas break that has seen Canada’s main in­dex lose more than 10 per cent of its value.

“What we’re see­ing in Toronto is not a Toronto-only or Canada­cen­tric de­cline, this is re­flect­ing what we’re see­ing around the world,” said An­drew Pyle, se­nior ad­viser and port­fo­lio man­ager at Sco­tia Wealth Man­age­ment.

The com­mod­ity-sen­si­tive loonie added 0.32 of a cent to 69.01 cents U.S. af­ter the Bank of Canada said it would hold its trend-set­ting pol­icy rate at 0.5 per cent.

New York mar­kets were also neg­a­tive but well off their worst lev­els of the day that at one point saw the Dow Jones in­dus­trial av­er­age shed more than 500 points.

At the close the Dow was down 249.28 points at 15,766.74, while the broader S&P 500 fell 22 points to 1,859.33 and the Nas­daq lost 5.26 points to 4,471.69.

Euro­pean and Asian mar­kets also fell. Ger­many’s DAX closed down 2.8 per cent while France’s CAC-40 and Bri­tain’s FTSE 100 were both off 3.5 per cent.

In Asia, Ja­pan’s Nikkei in­dex fell 3.7 per cent and is now in bear ter­ri­tory, down 20 per cent from its peak in June. The Hang Seng in Hong Kong lost 3.8 per cent, while China’s Shang­hai com­pos­ite shed one per cent of its value.

“This, to a cer­tain ex­tent, has be­come this vi­cious cir­cle where one mar­ket is ex­pe­ri­enc­ing a rout in its equity mar­ket lead­ing to al­most a con­ta­gion ef­fect into an­other mar­ket,” Pyle said.

The cy­cle of un­cer­tainty has roiled mar­kets in the early weeks of 2016 and Pyle said pos­i­tive in­di­ca­tors from earn­ings sea­son or the con­tin­u­ing Amer­i­can re­cov­ery may not be enough to snap them out of it.

CP PHOTO

A woman walks past a cur­rency ex­change store Wed­nes­day in Mon­treal.

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