The global economy is spooking the markets at the moment; China’s volatile markets, devaluation of the yuan and continued weakness in data; oil at six-year lows; the Fed reticent about a rise in interest rates; the recent Greek debt crisis. This cocktail of conditions is making investors nervous as Thursday’s session proved.
The main indexes of the Toronto and New York exchanges both ended with losses of around 2 per cent but certainly weren’t alone in the red; all the major markets around the world were also lower.
Asian stocks tanked as Shanghai fell more than 3 per cent; Sydney was among the markets hitting a multi-month low. In Europe the global concerns were exacerbated by the Greek prime minister’s resignation which means the country will have an election next month as he seeks re-election.
The S&P/TSX Composite Index closed down 299.6 (2.13 per cent)
The Dow Jones closed down 358.0 (2.06 per cent)
Oil is trending mixed (Brent down at $46.15, WTI up at $40.94 at 4.30pm)
Gold is trending higher (1152.10 at 4.30pm)
The loonie is valued at U$0.7641