North American stock slide, loonie trades down against U.S. dollar

Ross Marowits, The Canadian Press
Published Thursday, October 11, 2018 7:28AM EDT
Last Updated Thursday, October 11, 2018 5:02PM EDT

TORONTO — Canada’s main stock index hit a six-month low Thursday while U.S. stock markets suffered another selloff day as investors are pricing in political and trade uncertainties they’ve long overlooked.

The result is they have now woken up to issues that have existed for the last six to 12 months, says Kash Pashootan, CEO and chief investment officer at First Avenue Investment Counsel Inc.

“The longer they shrug them off the more of a price we have to pay at some point,” he said in an interview.

“When you’re trying to price in uncertainties that have existed for six, 12, 18 months over four or five trading sessions, of course you’re going to feel that in the markets.”

The S&P/TSX composite index closed down 200.27 points to 15,317.13, the lowest level since April with 389 million shares traded.

The 1.3 per cent selloff came a day after the TSX shed more than 330 points in the largest one-day decline in more than three years.

Energy posted the largest decrease, falling 3.37 per cent in a pullback from steady gains. The November crude contract was down US$2.20 at US$70.97 per barrel.

Gold stocks rose nearly eight per cent as the price of gold hit its highest level since August as investors sought a hedge against uncertainty. The December gold contract was up US$34.20 at US$1,227.60 an ounce.

In New York, the Dow Jones industrial average was down 545.91 points to 25,052.83 after dropping more than 800 points on Wednesday. All companies were in the red for a second-straight day. The S&P 500 index was down 57.31 points to 2,728.37, while the Nasdaq composite was down 92.99 points at 7,329.06

Pashootan says the

Read More Here...

Bookmark the permalink.