Stock markets plunge

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Stock markets in Toronto and New York plunged as the price of oil fell below US$27 a barrel and uncertainty over the global economy continued to fester.

The S&P/TSX composite index closed down 98.28 points at 12,087.44. It was the fifth straight day of losses for the resource-heavy market, which felt downward pressure from nearly all sectors, especially banks and base metal stocks.

The loonie gained 0.06 of a U.S. cent to 71.83 cents US even as the March contract for benchmark North American crude oil lost $1.24 to settle at US$26.21 a barrel.

April gold rose $53.20 to US$1,247.80 a troy ounce as investors sought a safe haven from lower equity and oil prices.

Elsewhere in commodities, March copper was down two cents at US$2 a pound and the March contract for natural gas dipped five cents to US$1.99 per mmBtu.

In New York, the Dow Jones industrial average fell 254.56 points or 1.6 per cent to 15,660.18, while the broader S&P 500 declined 22.78 points to 1,829.08 and the Nasdaq edged 16.75 points lower to 4,266.83.

Note to readers: This is a corrected story: A previous version said oil traded below $US27 a barrel for the first time since September 2003.