Markets start 2016 with sharp drop; TSX joins trend that began in China

TORONTO -- Stock markets around the world got off to a bad start in the first day of trading for 2016, sparked by a sharp drop in China that triggered a new "circuit breaker" mechanism that closed trading early to limit losses.

See Full Article

The Toronto Stock Exchange's S&P/TSX composite index was down 198.15 points or 1.52 per cent after an hour of trading, taking the index to 12,811.80 at midmorning.

In New York, the Dow Jones average was down 355.02 points or 2.04 per cent at 17,070.01, the broader S&P 500 index declined 40.36 points or nearly two per cent per cent to 2,003.58 and the Nasdaq lost 128.386 points or 2.80 per cent to 4,464.88.

The plunge began on the Shanghai index, which dived 6.9 per cent to 3,296.66 before the market was closed early to avert steeper falls. It was the first day of operation for a the new "circuit breaker" mechanism.

The Shanghai market's decline followed weak reports on its manufacturing sector, which appeared to contract in December for the 10th straight month, according to a private-sector survey of purchasing managers.

The Caixin/Markit index fell to 48.2 in December from 48.6 the previous month. Numbers below 50 indicate contraction.

The Canadian dollar traded at 71.99 cents U.S., down 0.26 of a cent from Thursday's close before the New Year holiday.

The February crude contract was up 78 cents at US$37.82 per barrel and the January contract for natural gas was down two cents at US$2.32.

The price of oil was partially helped by fresh political tensions in the Middle East. Saudi Arabia's execution of a Shiite cleric, along with 46 others on Saturday, sparked official outrage and protest in Iran and several other countries.

The February gold contract was up $18.40 to US$1,078.60 an ounce. Gold is often seen as a safe haven in times of political or economic uncertainty.



Advertisements

Latest Economic News

  • Ontario transit agency won't let Bombardier bid to operate commuter trains

    Economic CTV News
    MONTREAL -- Ontario's transit agency has decided not to appeal a court ruling favouring Bombardier but will exclude the Montreal-based company from bidding to continue operating GO Transit trains as it has done for decades. Source
  • Business groups blast Ontario labour proposals on last day of consultations

    Economic CTV News
    TORONTO -- Unions and advocacy groups made one last effort Friday to sway the Ontario government on its plan for sweeping changes to the province's labour laws, with some sounding the alarm about what they deem drastic measures and others arguing the proposal doesn't go far enough. Source
  • Marijuana companies band together to develop marketing guidelines

    Economic CTV News
    TORONTO -- Sixteen of Canada's licensed marijuana producers have enlisted the help of Advertising Standards Canada to develop guidelines on how the drug should be branded and promoted before its recreational use becomes legal next year. Source
  • Husky Energy set to repair pipeline that spilled crude into river a year ago

    Economic CTV News
    CALGARY -- Husky Energy (TSX:HSE) says it has been granted permission to repair and replace a section of pipeline that leaked 225,000 litres of crude in Saskatchewan just over a year ago. Chief executive Robert Peabody said that it will be applying lessons learned from the spill on the rebuild. Source
  • Ford says it will fight latest Takata recall

    Economic CTV News
    DETROIT -- Ford is fighting the latest expansion of the Takata air bag inflator recall. Earlier this month Takata filed documents with the U.S. government adding 2.7 million vehicles to the recall from Ford, Nissan and Mazda. Source
  • FedEx to close all Office Print and Ship Centres across Canada

    Economic CTV News
    FedEx Canada has announced that it will be closing all of its FedEx Office Print and Ship Centres, across Canada. All 24 centres, the manufacturing plant, and the head office in Toronto will close. Source
  • Car buying pushes retail sales up for third month in a row in May

    Economic CBC News
    Strong auto sector activity helped Canadian retail sales activity rise for a third straight month in May, climbing by 0.6 per cent to $48.9 billion, Statistics Canada said Friday. The monthly increase was double the consensus expectation of economists Source
  • Judge OKs $11.2M settlement for hacked Ashley Madison users

    Economic CTV News
    ST. LOUIS -- A federal judge on Friday approved an US$11.2 million settlement between the marital infidelity website Ashley Madison and users who sued after hackers released personal information, including financial data and details of their sexual proclivities. Source
  • Judge OKs US$11.2M settlement for hacked Ashley Madison users

    Economic CTV News
    ST. LOUIS -- A federal judge on Friday approved a US$11.2 million settlement between the marital infidelity website Ashley Madison and users who sued after hackers released personal information, including financial data and details of their sexual proclivities. Source
  • What drug-dealing 'darknet' sites have in common with eBay

    Economic CTV News
    NEW YORK -- AlphaBay, the now-shuttered online marketplace that authorities say traded in illegal drugs, firearms and counterfeit goods, wasn't all that different from any other e-commerce site, court documents show. Not only did it work hard to match buyers and sellers and to stamp out fraud, it offered dispute-resolution services when things went awry and kept a public-relations manager to promote the site to new users. Source