Markets sharply lower to start 2016 after China triggers worldwide sell-off

TORONTO - Stock markets got off to a tumultuous start to 2016 as a sharp decline in China triggered a sell-off that spread worldwide.

See Full Article

The Toronto Stock Exchange's S&P/TSX composite index was down 82.80 points, taking the index to 12,927.15, after falling as much as 262 points earlier in the session.

The Canadian dollar ended at 71.73 cents U.S., down 0.52 of a cent from Thursday's close before the New Year's holiday.

In New York, the Dow Jones average closed down 276.09 points at 17,148.94, the broader S&P 500 index declined 31.28 points to 2,012.66 and the Nasdaq lost 104.32 points to 4,903.09.

Fresh political tensions between Saudi Arabia and Iran left traders questioning the outlook for oil prices if supplies are affected.

The February crude contract was originally up but eventually gave way to close 28 cents lower at US$36.76 a barrel, while the February contract for natural gas was unchanged at US$2.33. Gold prices ticked up, with the February contract rising $15 to US$1,075.20 an ounce.



Advertisements

Latest Economic News

  • Feds launch contest for $950M 'supercluster' plan aimed at creating jobs, growth

    Economic CTV News
    OTTAWA -- The Trudeau government is opening the competition for its $950-million "supercluster" program that aims to bring together industry and academia as a way to lift the innovation economy. Economic Development Minister Navdeep Bains is adding new details about deadlines and qualifying criteria for a five-year initiative central to the feds' innovation program. Source
  • New York fines BNP Paribas $350 million in trading scheme

    Economic CTV News
    New York state regulators have fined French bank BNP Paribas $350 million, alleging bank employees for years manipulated global currency markets to benefit themselves at the expense of their customers. The New York Department of Financial Services said Wednesday that from 2007 to 2013 at least a dozen BNP Paribas traders manipulated the foreign exchange market, using chat rooms and fake trades in currencies including the South African rand, Hungarian forint and Turkish lira. Source
  • Bombardier and U.S. aerospace supplier Triumph settle legal dispute

    Economic CTV News
    MONTREAL -- Bombardier and Triumph have reached a settlement about five months after the U.S. aerospace supplier filed a $455-million lawsuit against the Quebec-based aircraft manufacturer. Details of the settlement announced Wednesday were not disclosed. Source
  • New TD call centre will create 575 jobs in Moncton, N.B., province says

    Economic CTV News
    MONCTON, N.B. -- TD has announced plans for a new call centre in Moncton, N.B., that the provincial government says will create up to 575 full-time jobs. The Toronto-based bank will receive up to $9 million in financial assistance from the government, which says the call centre will add $109-million to the province's GDP over six years. Source
  • Graco recalls My Ride 65 car seats in Canada for restraint defect

    Economic CBC News
    Graco's Canadian division is recalling 1,393 car seats with defective harness restraints. The recall affects certain "My Ride 65" model car seats manufactured between May 14, 2014 and July 30, 2014, according to a safety advisory from Graco. Source
  • Lavazza Coffee buys 80% stake in Canada's Kicking Horse

    Economic CBC News
    Italian coffee conglomerate Lavazza has bought an 80 per cent stake in B.C.-based Kicking Horse Coffee in a deal that values the company at $215 million. Elana Rosenfeld, who founded the Kicking Horse brand in 1996, will continue to own the remaining 20 per cent and will continue to be CEO of the company, which has grown to become the No. Source
  • OPEC nearing deal to extend oil output cut to March 2018

    Economic CBC News
    OPEC and non-member oil producers moved closer on Wednesday to clinching a deal on extending output cuts by nine months to clear a global stocks overhang and prop up the price of crude. The Organization of the Petroleum Exporting Countries meets in Vienna on Thursday to consider whether to prolong the accord reached in December in which OPEC and 11 non-members agreed to cut oil output by about 1.8 million barrels per day in the first half of 2017. Source
  • Moody's cuts China credit rating over rising debt

    Economic CBC News
    The Moody's ratings agency on Wednesday cut China's credit rating due to surging debt, prompting a protest by Beijing and highlighting challenges faced by communist leaders as they overhaul a slowing economy. The downgrade adds to warnings about China's reliance on credit to propel growth after the 2008 global crisis. Source
  • 'The Bank of Canada is not spooked' : Why the central bank is holding rates steady

    Economic CBC News
    The Bank of Canada kept its benchmark interest rate steady on Wednesday, but signalled that could change once the weak U.S. economy starts to rebound as expected through the latter part of the year. Canada's central bank kept its target for the overnight rate steady at 0.5 per cent on Wednesday, the same level it's been at since the middle of 2015, because the economy isn't showing any signs of needing any more or any less stimulus. Source
  • Ottawa offers $950 million for 'superclusters' to create jobs

    Economic CBC News
    The federal government is spending $950 million to fund an "Innovation Superclusters Initiative" that it says will "create more middle-class jobs and more opportunities for Canadian businesses to grow into globally successful brands." Minister of innovation, science and economic development Navdeep Bains made the announcement at the offices of BlackBerry QNX in Kanata, Ont. Source