Friday, October 31st8.4°C
23696
22916

TSX down sharply over 'cliff' concern

The Toronto stock market was sharply lower Wednesday amid growing pessimism over the pace of budget negotiations aimed at heading off a fiscal crisis in the U.S.

The S&P/TSX composite index fell 103.2 points to 12,008.43 with weakness spread across all sectors while the TSX Venture Exchange dipped 1.49 points to 1,204.68.

The Canadian dollar was off 0.06 of a cent to 100.47 cents US.

U.S. indexes were also lower with the Dow Jones industrials down 67.49 points to 12,810.64.

The Nasdaq shed 21.29 points to 2,946.51 while the S&P 500 index dropped 9.24 points to 1,389.7 as North American markets extended the losses from Tuesday which were triggered by comments from Senate Majority Leader Harry Reid. He said that there has been "little progress" in talks about avoiding a so-called fiscal cliff at the end of next month.

Economists say the combination of steep tax increases and spending cuts would significantly cut economic growth and likely push the U.S. back into recession and damage other economies around the world.

President Barack Obama is meeting with corporate executives at the White House on Wednesday and then travelling to Pennsylvania on Friday to push for upper income bracket earners to pay higher tax rates.

But he is not meeting with Congressional leaders until next week.

"More members from both sides need to start walking toward the middle in the next four weeks and, at least, agree on a two-step process to avoid the cliff," said BMO Capital Markets senior economist Sal Guatieri.

"This involves a down-payment on some deficit reduction by year end, while leaving the details on broader deficit fighting when the new Congress begins next year."

Commodity prices fell as the U.S. dollar strengthened.

The gold sector led losers, down 2.4 per cent as December gold on the New York Mercantile Exchange dropped $28.70 to US$1,713.60 an ounce. Goldcorp Inc. (TSX:G) faded $1.16 to $37.79.

The mining sector lost 1.65 per cent while December copper lost five cents to US$3.49. Teck Resources (TSX:TCK.B) shed 51 cents to $31.76.

January crude dropped $1.52 to US$85.66 a barrel and the energy sector dropped almost one per cent. Suncor Energy (TSX:SU) fell 44 cents to $32.45.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14458.69-68.88
S&P CDNX771.65-9.42
DJIA17195.42221.11
Nasdaq4566.138+16.912
S&P 5001994.65+12.35
CDN Dollar0.8873-0.0061
Gold1165.30-33.2999
Oil80.27-0.63
Lumber322.40-1.20
Natural Gas3.715+0.066

 
Okanagan Companies
Pacific Safety0.11+0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.150.00
Cantex0.045-0.015
Anavex Life Sciences0.1711-0.0089
Metalex Ventures0.0350.00
Russel Metals32.22-0.35
Copper Mountain Mining1.97-0.05
Colorado Resources0.14+0.005
ReliaBrand Inc0.012-0.004
Sunrise Resources Ltd0.05+0.025
Mission Ready Services0.375+0.005

 





FEATURED Property
2119910201-1350 Ridgeway Drive
1 bedrooms 1 baths
$195,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Empty nesting: financial issues

Now that the children have ‘left the nest’, it is a good time to step back and take stock of your financial situation. Being on your own will probably cut household costs to some extent, b...


Keep your haunted home safe

Eerie sounds, spooky lights and Jack-o’-lanterns aglow—extra efforts at Halloween will keep visitors coming back for both tricks and treats. However, to keep the fun going, it’s imp...


What I learned in China

Photo: ContributedI will never be an expert on China. It is just too big, too complex and too old with layers of history and meaning that would take several lifetimes to unravel. As I said to my hosts...

_








Member of BC Press Council


22632