TSX drops sharply as oil prices hit new 5½ year lows

TSX drops sharply as oil prices hit new 5½ year lows

TSX drops sharply as oil prices hit new 5½ year lows With Christmas spirit now ebbing away and the markets getting back to normal trading levels the price of oil is once again firmly back on the minds of investors. OPEC seems content to keep productions levels as they are in the hope that US shale producers blink first and cut supplies. In the meantime the price of Brent crude fell to new 5½ year lows of below $50, and markets around the world reacted by cutting risk. The energy and banking sectors were hit the hardest along with raw materials but all ten of the S&P TSX sub-sectors fell.

The S&P TSX Composite Index closed down 360.95 (2.45 per cent)

The NYSE closed lower

Oil is trending lower

Gold is trending higher

The loonie is down against the US dollar (at around 85 cents)