TSX plunges almost 3 per cent on commodities slump
Concern over weakness in China has hit commodities Monday and the main index of the Toronto Stock Exchange has plunged almost 3 per cent while the Dow, S&P500 and Nasdaq have also suffered 3-digit losses.
Asian markets had closed mixed earlier in the day as data from China fuelled concern. European markets have also slumped with China and the expanding auto emissions scandal weighing heavily.
The S&P Composite Index closed down 374.0 (2.80 per cent)
The Dow Jones closed down 312.8 (1.92 per cent)
Oil is trending lower (Brent $47.35, WTI $44.44 at 4.35pm)
Gold is trending lower (1131.50 at 4.35pm)
The loonie is valued at U$0.7469
Mixed day for Canadian jobs
There was a flurry of jobs-related news Monday. GE has said it will shift a manufacturing plant to Canada from the US and create 350 jobs. The company’s second announcement this month of expansion in Canada will see U$265 million of investment.
Meanwhile retailer Whole Foods announced 1,500 jobs are to be cut from its US and Canadian operations. The cut represents 1.6 per cent of its workforce. However the firm has 2000 vacancies and 100 new stores planned so it hopes that those workers losing their jobs will find new roles within the business.
Finally, an analyst from the Canadian Centre for Policy Alternatives says Stephen Harper’s pledge to create 1.3 million jobs in Canada is not all that impressive. David Macdonald wrote on the organisation’s blog that the government’s numbers are only really reflecting what will happen in the economy anyway and warns that: “there will be between 1.8 and 2.6 million more Canadians aged 15 years and over potentially looking for work in 2020.”
Alberta to move away from coal
Alberta’s premier has told a business group that the province will do the right thing for environment and move away from coal power. Rachel Notley told the Montreal Board of Trade that 55 per cent of Alberta’s electricity is generated by coal-fuelled plants and says that a board will look at ways to phase it out. CBC reports that Ms. Notley is currently on a tour of eastern Canada and also New York to sell the benefits of doing business in Alberta.