TSX and Dow take a beating
Posted Aug 8, 2011 5:34 pm.
This article is more than 5 years old.
Investors feared the worst, and it turned out to be very bad.
Monday was the first day of trading since Friday’s unprecedented downgrade of the U.S. credit rating.
The Toronto market plummeted 491.75 points to 11,670.42, with only a handful of stocks on the main index closing higher.
The Dow Jones in New York plunged 634.76 points, or 5.5 per cent, to close out the day at 10,809.85.
The Loonie closed down one and a-quarter cents to 100.99 cents US, while crude oil fell to its lowest level of the year $5.57 to $81.31.
With stock markets plummeting, the price for gold on the rise, and the price of oil on the decline, many Canadians are wondering how problems in the U.S. will affect them.
Scotiabank’s Warren Jeston tells 660News the value of the Loonie is being impacted.
“We’re seeing a decline on the Canadian dollar; it’s almost back to parody again. That’s one of the offshoots of this sudden shift, is that commodity prices are coming down. Oil prices have gone down. We’re going to pay less at the pumps because of that,” says Jeston.
He adds, the lower dollar will help provide some relief to Canada’s exporters and says if you could live anywhere in the world right now, Canada would be the place to be.
