Wednesday, April 16th9.3°C
21104
21086

TSX and the fiscal cliff

The Toronto stock market was lower Tuesday amid relief that there was a clear-cut winner from Tuesday's U.S. presidential election, with Barrack Obama winning a solid majority of electoral college votes over Republican challenger Mitt Romney.

But that sentiment was tempered by the realization that there will likely be some tough slogging ahead as Democrats and Republicans try to extricate the government from automatically imposing tax hikes and steep spending cuts at the end of the year. Investors worry this so-called fiscal cliff scenario would send the U.S. back into recession.

The S&P/TSX composite index fell 82.91 points to 12,278.29 as Canadian investors also absorbed earnings reports from the resource and industrial sectors, with several heavyweights missing estimates.

The TSX Venture Exchange was 4.34 points lower to 1,298.8.

The Canadian dollar was down 0.16 of a cent to 100.67 cents US as commodities backtracked and traders took in another reminder of the fragile state of Europe's economy while looking ahead to a crucial vote in the Greek parliament later in the day.

New York markets were deep in the red as the Dow Jones industrials tumbled 174.56 points to 13,071.12, the Nasdaq composite index dropped 37.94 points to 2,973.99 while the S&P 500 index fell 19.21 points to 1,409.18.

There had been concern that America would have to endure a re-run of the protracted election of 2000.

But its arms of government remain divided, with the Democrats holding onto their majority in the Senate and the Republicans in control of the House of Representatives. That could still lead to a logjam in policymaking, not least over the state of the country's public finances.

"In other words, it's like nothing ever happened," observed Andrew Pyle, investment adviser at ScotiaMcLeod in Peterborough, Ont.

Greece was also back in focus ahead of a crucial vote in its parliament later in the day that could determine whether the country stays in the eurozone. If lawmakers don't back a E$13.5 billion package of spending cuts and tax increases, the country faces the prospect of losing access to its bailout lifeline and potentially defaulting on its mountain of debt and leaving the monetary union.

The Canadian Press


Read more Business News

20260


Recent Trending




Today's Market
S&P TSX14446.52+142.60
S&P CDNX997.975.87
DJIA16424.85162.29
Nasdaq4086.225+52.064
S&P 5001862.31+19.33
CDN Dollar0.9088+0.0011
Gold1302.20+2.20
Oil103.99+0.23
Lumber326.50-2.30
Natural Gas4.542+0.012

 
Okanagan Companies
Pacific Safety0.105-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.22-0.05
Cantex0.045-0.005
Anavex Life Sciences0.375-0.005
Metalex Ventures0.0750.00
Russel Metals30.55+0.28
Copper Mountain Mining2.42+0.10
Colorado Resources0.2650.00
ReliaBrand Inc0.12-0.01
Sunrise Resources Ltd0.025-0.005
Mission Ready Services0.23-0.02

 
19691


17772

FEATURED Property
1909607513-Moody Cres
3 bedrooms 2 baths
$389,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Valuation fears grip markets

The Big Picture Valuation fears grip markets Growing concerns about the level of stock market valuations sparked a risk-off trade in global markets this week. Investors are worried that many companies...


Quick and nimble

Photo: ContributedFor many businesses this has been a tremendously difficult time since the 2008 crisis. Business fell off. Sales techniques that always worked, well… stopped working. Customers...


Keeping a clear focus on the future

Many times when we are gripped by fear it can be one of two mental challenges that we can learn to overcome. Photo: ContributedThe Fear is completely imaginary. In this situation there may be no fact...

_



21604

21604


Member of BC Press Council


21202