North American markets plunge amid another oil price drop

TORONTO -- North American markets were seriously in the red at mid-afternoon Tuesday as another big downturn in the price of oil roiled markets worldwide.

See Full Article

The Toronto Stock Exchange's S&P/TSX index was down 250.46 points or almost two per cent to 12,423.91, adding to a 147-point drop Monday that started the month's trading.

New York indexes were also in full retreat, with the Dow Jones industrial average down 301.05 points or 1.8 per cent at 16,148.13, while the S&P 500 fell 36.70 points or 1.9 per cent to 1,902.68 and the Nasdaq lost 100.88 points or almost 2.2 per cent to 4,519.49.

Investor concern remained on oil prices, which plunged for a second consecutive session amid fears for the world economy in the wake of disappointing manufacturing reports out of the U.S. and China on Monday.

On commodity markets, the March contract for benchmark U.S. oil fell $1.27 to US$29.95 a barrel after dropping $2 on Monday, and the heavily weighted energy sector was down 3.38 per cent on the TSX.

The oil-sensitive loonie was off 0.52 of a U.S. cent at 71.27 cents US.

"Hope is extinguished for now, as the now two-day fall in crude has regained the market's focus," John Briggs, head of Americas fixed income strategy at RBS, wrote in a note to investors.

Elsewhere in commodities, March natural gas fell 13 cents to US$2.02 per mmBtu after plummeting almost 15 cents Monday, while April gold edged 20 cents higher to US$1,128.20 an ounce and copper gave back a penny to US$2.04 a pound.

In Europe, Germany's DAX finished 1.8 per cent lower, while France's CAC-40 fell 2.5 per cent and Britain's FTSE 100 lost 2.7 per cent.

In Asia, Tokyo's Nikkei 225 earlier closed 0.6 per cent lower, South Korea's Kospi index fell one per cent and Hong Kong's Hang Seng was off 0.8 per cent. China's man index, the Shanghai composite, was up 2.26 per cent.

With files from The Associated Press



Advertisements

Latest Economic News

  • BlackBerry expecting US$940 million in Qualcomm dispute resolution

    Economic CTV News
    WATERLOO, Ont. -- BlackBerry Ltd. (TSX:BB) says it will receive US$940 million from Qualcomm by May 31 to settle a dispute over royalty payments. An arbitrator sided with BlackBerry in April, and announced an interim award of US$814.9 million plus additional amounts for interest and legal fees. Source
  • World shares weaken ahead of G7 meeting; oil bottoms out

    Economic CTV News
    HONG KONG -- World stock markets weakened Friday as investors awaited the upcoming G-7 summit and oil prices rebounded somewhat as markets shook off initial disappointment over a production cut deal. KEEPING SCORE: European shares opened lower, with France's CAC 40 down 0.8 per cent to 5,297.13 and Germany's DAX lost 0.5 per cent to 12,561.85. Source
  • OPEC decision stabilizes oil prices, but for how long?

    Economic CBC News
    In one of the least surprising OPEC meetings in a while, members of the cartel of oil-exporting countries and their non-member allies agreed to extend oil production cuts on Thursday, which will support the price of oil and should continue to help pave the way for Alberta's economic recovery. Source
  • The case for BlackBerry at $45 US a share

    Economic CBC News
    BlackBerry Ltd. shares have been on a hot streak — rising more than 60 per cent in recent weeks — and one technology analyst thinks some of the company's new products have the potential to help push the stock to $45 US in three years. Source
  • Malicious hackers say they demanded $50,000 ransom for stolen Bell data

    Economic CBC News
    A pair of malicious hackers say they demanded that Bell pay a $50,000 US ransom to prevent stolen customer data from being shared online, according to a person claiming responsibility for the theft. That person — who communicated with CBC News via encrypted chat using the handle "exodus" — says a ransom email was sent to Bell on May 5, detailing the extent of the breach and the thieves' terms. Source
  • Kinder Morgan announces final investment decision on Trans Mountain pipeline

    Economic CTV News
    VANCOUVER -- Kinder Morgan says it will proceed with the $7.4-billion Trans Mountain pipeline expansion as long as it secures satisfactory financing for the project through its initial public offering. The Texas-based company, in conjunction with its indirect subsidiary Kinder Morgan Canada, announced on Thursday its final investment decision on the project, which is conditional on the successful completion of the IPO. Source
  • Amazon opens first brick and mortar New York bookshop

    Economic CTV News
    Online retail giant Amazon on Thursday opened its first brick and mortar bookstore in New York, selling a limited range of its highest-rated books and letting customers browse products as in times gone by. Amazon, which launched as an online bookseller in 1995 but which now sells everything from designer clothes to groceries, bided its time before venturing into the US cultural capital. Source
  • Ontario threatens its own protectionism in fight against Texas Buy American bill

    Economic CTV News
    TORONTO - Ontario has hired lobbyists in Texas and is threatening protectionist measures of its own as it tries to convince state officials not to pass a Buy American bill. Premier Kathleen Wynne claimed victory last month after a successful Ontario push to stop similar provisions in New York state. Source
  • Alberta Energy Regulator to reconsider Suncor tailings plan it rejected

    Economic CTV News
    CALGARY -- Alberta's energy watchdog has agreed to reconsider its rejection of a plan by oilsands giant Suncor to clean up its tailings ponds. The Alberta Energy Regulator denied the Calgary-based company's applications in March, saying they did not satisfy requirements and a new proposal was needed. Source
  • Bank CEOs say Home Capital issues not widespread

    Economic CTV News
    TORONTO -- The CEOs of two of Canada's biggest banks say liquidity troubles at mortgage lender Home Capital are not indicative of a broader problem, but they are monitoring their mortgage portfolios in light of concerns about high house prices. Source