Daily Wrap-up: Turbulence in Toronto, New York halted

Daily Wrap-up: Turbulence in Toronto, New York halted

Daily Wrap-up: Turbulence in Toronto, New York halted Turbulence in Toronto, New York halted
There was drama for the world’s markets Wednesday as a raft of unusual conditions added to the current nervousness. While European finance chiefs await a new plan that could avoid Greece going bankrupt China was suffering from a prolonged sell-off. Meanwhile the gap between Brent Crude and West Texas Intermediate widened and the New York Stock Exchange suffered technical issues and was suspended for around 3 hours. NYSE chiefs were quick to say that the problem was not a cyber-attack but that it was unable to connect to other exchanges. Asian markets have been spooked by investors ditching stock in Chinese-listed firms and all major markets in the region closed lower. European sentiment of a Greek deal was higher Wednesday and a budget in the UK included some interesting measures; the major European markets closed higher.

The S&P/TSX Composite Index closed down 212.4 (1.45 per cent)
The NYSE closed lower
Oil is trending mixed (Brent up at $57.34, WTI down at $51.86 at 4.10pm)
Gold is trending higher
The loonie is valued at U$0.7852 (at 4.10pm)
 
Oliver says Canada must stay the course
The federal finance minister said Wednesday that with the current “fragile” state of the global economy Canada must “stay the course” of its monetary policy. Speaking at the Canada China Financial Summit Joe Oliver said that lowering taxes is an important part of the plan. He also noted that China is increasingly important to Canada’s economy.
 
Nine West files for bankruptcy protection
The company that operates Nine West stores in Canada has filed for bankruptcy protection in the Ontario Superior Court. Sherson Group Inc. owes $32.2 million to more than 60 suppliers according to court papers files Wednesday.
 
Quebec challenges plan for national securities regulator again
Quebec is once again challenging Ottawa’s proposal for a national securities regulator. The province has asked the Court of Appeal to rule on whether the plan is constitutionally sound; it believes that it is not based on a 2011 Supreme Court ruling on how powers are divided between federal and provincial administrations.
 
Microsoft confirms job cuts
Microsoft has confirmed job cuts that had been rumoured this week. In all 7,800 roles will go in addition to the 18,000 announced last year. The jobs at risk are mainly in hardware divisions but no details of any specific impact on the company’s 11 Canadian locations have been announced.