TSX down 2.4 per cent as plunging oil sends markets into tailspin

TORONTO -- The plunging price of oil wreaked havoc on global stock markets Wednesday, with major indexes in North America adding to big losses in Europe and Asia.

See Full Article

In mid-afternoon trading, the Toronto Stock Exchange's S&P/TSX composite index was down 290.57 points or 2.42 per cent at 11,711.67.

The big drop on the TSX extended an almost unbroken string of losses since the Christmas break that have lowered Canada's main market to levels not seen since August 2012.

Markets in New York were also down sharply, with energy companies leading the decline as the March contract for benchmark crude oil fell $1.19 to US$28.38 a barrel.

The Dow Jones industrial average, off well over 500 points earlier in the day, was down 358.88 points or more than two per cent at 15,657.14. The S&P 500 fell 36.54 points or more than 1.9 per cent to 1,844.79 and the Nasdaq lost 44.44 points or about one per cent.

The commodity-sensitive loonie was poised to make a gain for the first time in more than two weeks, trading up 0.12 of a cent at 68.81 cents U.S. That came as the Bank of Canada decided to hold its trendsetting policy rate at 0.5 per cent.

Analysts had speculated there was a 50-50 chance the central bank might cut in order to stimulate an economic recovery.

Elsewhere in commodities, the March contract for natural gas fell a penny to US$2.10 per mmBtu, while February gold was up $17.10 at US$1,106.20 a troy ounce. Bullion is often seen as a safe haven in times of economic turmoil.

In Europe, 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.



Advertisements

Latest Economic News

  • Trump's trade actions bring uncertainty to Canadian lumber country

    Economic CTV News
    MADAWASKA, Ont. -- It didn't take long for Donald Trump's new tariffs on softwood lumber to echo in Ontario's Madawaska Valley -- a forestry-dependent area almost exactly 1,000 kilometres due north of the U.S. capital. Source
  • Asian stocks climb on hopes for U.S. tax cuts, budget deal

    Economic CTV News
    SEOUL, Korea, Republic Of -- Shares rose in Asia on Wednesday after hopes for tax cuts by U.S. President Donald Trump drove record-breaking gains overnight on Wall Street. KEEPING SCORE: Japan's Nikkei 225 jumped 1.1 per cent to 19,289.43 and South Korea's Kospi rose 0.5 per cent to 2,207.84. Source
  • LCBO workers delivering overwhelming strike vote

    Economic CTV News
    TORONTO - Liquor Control Board of Ontario staff have voted 93 per cent in favour of a strike as their union continues to bargain for a new collective agreement. Voting by members of the Ontario Public Service Employees Union was held Monday and Tuesday. Source
  • Swedish museum celebrates corporate failure

    Economic CTV News
    From Harley Davidson-branded perfume to a lasagna produced by toothpaste maker Colgate, the corporate world is awash with ideas that fail to connect with consumers, and one museum curator hopes to inspire people with them. Source
  • Metro profit beats estimates despite lower produce, meat, dairy prices

    Economic CBC News
    The chief executive of Metro Inc. says prices for produce, meat and dairy were lower in its most recent quarter, but the grocer still increased its profits and beat analyst estimates. Food prices were about two per cent lower than a year ago during the 12-week period ended March 11, CEO Eric La Fleche told a conference call with financial analysts Tuesday. Source
  • Uber looks towards electric aircraft for next ride-hailing project

    Economic CTV News
    NEW YORK - Uber is taking to the skies with its next project - "flying cars" - even as all eyes are on its problems on the ground. On Tuesday, the embattled ride-hailing company announced plans for an on-demand network of electric aircraft that can take off and land vertically, like a helicopter. Source
  • Billy Bee and Doyon honey sold in Canada to be made in Canada, too

    Economic CBC News
    The company that owns the Billy Bee and Doyon honey brands says it will start using only Canadian honey for both products in Canada this year. McCormick & Co. says Billy Bee and Doyon products containing all-Canadian honey will start appearing on store shelves in June, while the Billy Bee organic variety will arrive before the end of the year. Source
  • Trump plans to slash U.S. corporate tax rate to 15%

    Economic CBC News
    President Donald Trump plans to stick with his campaign pledge to slash the corporate tax rate from 35 per cent to 15 per cent, but the dramatic cut raises a problematic question for the White House: How can the president deliver the "massive" tax cut he promised without also blowing a massive hole in the budget? Source
  • Reducing debt among Barrick Gold's priorities: president

    Economic CTV News
    TORONTO -- Barrick Gold says it will focus on maximizing its free cash flow, reducing debt and maintaining investment discipline in the year ahead. Company president Kelvin Dushnisky told Barrick's annual meeting Tuesday that the gold mining giant will also work on transforming its business to better use technology. Source
  • Billy Bee and Doyon honey brands shifts to all-Canadian honey in Canada

    Economic CTV News
    TORONTO -- The company that owns the Billy Bee and Doyon honey brands says it will start using only Canadian honey for both products in Canada this year. McCormick & Co. says Billy Bee and Doyon products containing all-Canadian honey will start appearing on store shelves in June, while the Billy Bee organic variety will arrive before the end of the year. Source