💙 🔷 Not impressed by Big Tech in Q3? Explore these Blue Chip Bargains insteadExplore for free

CANADA STOCKS-TSX pares earlier plunge, but still battered by global rout

Published 2015-08-24, 11:45 a/m
© Reuters.  CANADA STOCKS-TSX pares earlier plunge, but still battered by global rout
US500
-
DJI
-
CL
-
GSPTSE
-
SU
-
RY
-
VIX
-

(Updates throughout with market commentary, details, market
reaction)
* TSX down 329.13 points, or 2.44 percent, to 13,144.54
* All 10 of the TSX's main sectors were down
* Energy and financials down more than 3 percent

By Solarina Ho
TORONTO, Aug 24 (Reuters) - Canada's main stock index was
severely battered on Monday, swept along by the global market
rout that saw a nearly 9-percent plunge in Chinese stocks and
sent commodity prices plunging.
A recent string of lackluster data out of China, one of the
world's biggest economies and commodities consumers, have
ignited worries the country will spur a global economic
slowdown.
Chinese stocks tanked on Monday when Beijing failed to
intervene over the weekend as some had hoped, triggering panic
selling around the globe. The CBOE Volatility Index, a key
measure of U.S. equity volatility, surged above the 50 mark for
the first time since the financial crisis in 2009. MKTS/GLOB
On Wall Street, the S&P 500 briefly went into correction
territory, and the Dow Jones industrial average lost more than
1,000 points at one point. .N
"Historically, there's usually a reversal day of some sort,
but I don't think you'll know until later today," said Paul
Hand, managing director at RBC Capital Markets.
"Maybe this is the big one in terms of the earthquake and
then there are lot of aftershocks that can go on for days and
weeks."
At 11:12 a.m. EDT (1512 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE fell 329.13 points, or 2.44
percent, to 13,144.54, well off the session lows.
At one point shortly after the open, the index suffered its
biggest intraday loss since the financial crisis in 2009,
falling 768.50 points, or 5.7 percent to 12,705.17.
All 10 of the index's key sectors were mired in red, though
most pared initial declines of 3 percent or more.
"The fundamentals of individual stocks aren't really
relevant right now," Hand said.
The hefty financials group, which also reports quarterly
results this week, sank more than 3.3 percent, at one point
touching its lowest level since October 2013.
Four of the top five weightiest losers were made up of
Canada's four biggest banks. Royal Bank of Canada RY.TO ,
Canada's largest bank, fell 3.0 percent to C$70.65.
Energy stocks continued their downward spiral, at one point
plummeting to the lowest level since December 2003. The sector
was trading down about 3.9 percent late morning.
Suncor Energy Inc SU.TO stumbled 2.9 percent to C$33.30.
Oil prices tumbled more than 6 percent on Chinese worries,
with U.S. crude hitting as low as $37.75 a barrel. It was down
about 4.8 percent at $38.52 late morning. O/R
Declining issues outnumbered advancing ones on the TSX by
227 to 16, for a 14.19-to-1 ratio. The index posted 123 new
52-week lows.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.