KEY INDEX SUFFERS MAJOR LOSS
Canada’s main stock index sustained its largest loss in more than a month while the loonie regained lost ground after the economy grew slightly faster than economists had expected in July. The Canadian dollar traded at an average of US77.25 cents compared with an average of US76.66 cents on Thursday, boosting expectations that the Bank of Canada would raise its key interest rate next month. The dollar’s performance was another positive read on the Canadian economy, said Ian Scott, an equity analyst at Manulife Asset Management. The economy grew by 0.2 per cent in July compared to a 0.1-per-cent hike expected by economists. The TSX closed down and gold rose as investors moved to safety after Italy’s new government announced a big spending spike. The S&P/TSX composite index closed down 131.48 points to 16,073.14, after hitting a low of 16,063.70 on 260.5 million shares traded.