TSX rebounds from worst day of year but still closes lower on economic worries

Ross Marowits, The Canadian Press
Published Thursday, August 15, 2019 12:29PM EDT
Last Updated Thursday, August 15, 2019 4:35PM EDT

TORONTO — Canada’s main stock index rebounded from its worst day of the year but still closed at a five-month low Thursday amid continuing concerns about a global economic slowdown.

Markets have finally “sobered up” and are accepting that there is a global economic slowdown, said Kash Pashootan, CEO and chief investment officer at First Avenue Investment Counsel Inc.

“Arguably there’s not that much different today in terms of global uncertainty than there was two or three months ago when markets were booming but the fact is that although the good and the bad have not really changed the markets have now decided to take a view more to the negative and the optimism has really worn off,” he said in an interview.

Pashootan said he doesn’t understand the euphoria that sent markets to record highs last month and that geopolitical uncertainties and a global growth slowdown justify why equities shouldn’t go higher.

He said markets were intoxicated by central bank interest rate cuts but are now back to focusing on fundamentals and geopolitical factors such as the lingering trade war between the U.S. and China, protests in Hong Kong, an economic slowdown in Germany and weaker-than-expected data from India, Argentina and Singapore.

The S&P/TSX composite index closed down 33.41 points to 16,012.53, after hitting an intraday low of 15,964.38, the lowest level since Feb. 19.

In New York, the Dow Jones industrial average was up 99.97 points at 25,579.39 after losing 800 points on Wednesday. The S&P 500 index was up seven points at 2,847.60, while the Nasdaq composite was down 7.32 points at 7,766.62.

Despite lingering fears of a recession, U.S. markets were buttressed by retail sales rising a healthy

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