Saturday, March 28th17.4°C
24867
25546

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

25528


Recent Trending




Today's Market
S&P TSX14812.42-57.38
S&P CDNX681.43+1.87
DJIA17712.66+34.43
Nasdaq4891.22+27.86
S&P 5002061.02+4.87
CDN Dollar0.7928-0.0082
Gold1196.30-8.80
Oil48.43-3.00
Lumber282.40-3.60
Natural Gas2.62-0.05

 
Okanagan Companies
Pacific Safety0.125-0.005
Knighthawk0.010.00
QHR Technologies Inc1.50+0.00
Cantex0.03-0.01
Anavex Life Sciences0.219+0.009
Metalex Ventures0.04-0.01
Russel Metals24.50-0.18
Copper Mountain Mining1.13+0.00
Colorado Resources0.125+0.010
ReliaBrand Inc0.006-0.001
Sunrise Resources Ltd0.045+0.000
Mission Ready Services0.255+0.020
Decisive Dividend Corporation1.80+0.02

 





FEATURED Property
17961112605 Thacker Drive, Kelowna, BC
10065287 bedrooms
$2,895,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


CRA Notice of Assessment

Many Canadians rush to file their taxes on time each year and don’t think about it until the next year. One of the most overlooked notices received from the CRA annually is the annual Notice of ...


Medical confidential?

If ICBC asks your doctor for your information you may wonder: Can ICBC ask my doctor for my medical information? Can ICBC request a medical report from my doctor without my consent? What is ICBC entit...


Stay out of sales limbo!

Have you ever had a series of good meetings with a prospect … gathered all kinds of information … and given what you thought was a great presentation … only to receive a response ...

_





25482


Member of BC Press Council


24920