TSX, Dow move slower at opening bell
Posted Aug 10, 2011 10:05:45 AM.
This article is more than 5 years old.
TORONTO, Ont. – The Toronto and New York stock markets fell slightly following a substantial but short-lived relief rally Tuesday after the U.S. Federal Reserve promised to leave interest rates ultra-low until mid-2013.
The S&P/TSX composite index fell 8.3 points to 12,100.96, while the Dow industrials plunging 304.51 points to 10,935.26 following a 430-point jump.
In Toronto, the main index had soared 438 points as investors snapped up stocks that were beaten down during a market rout that carved 10 per cent from the TSX over the previous six sessions.
But the central problems confronting markets remain: dwindling confidence in political leaders and central bankers to get a grip on the European government debt crisis and a growing conviction that the U.S. is sliding back into recession.
A downgrade of U.S. government debt by S&P last Friday served to further sour investor sentiment.
The Canadian dollar was down 0.96 of a cent to 101.2 cents (U.S.) as investors believe the Fed’s stance on rates likely means the Bank of Canada is in no hurry to resume hiking interest rates.
