Newspaper article The Canadian Press

Toronto Stock Market Unchanged as Markets Await Scotland Referendum Results

Newspaper article The Canadian Press

Toronto Stock Market Unchanged as Markets Await Scotland Referendum Results

Article excerpt

TSX unchanged as markets await Scotland vote

--

TORONTO - The Toronto stock market closed almost unchanged Thursday amid an independence referendum in Scotland that had the potential to send ripples across global markets.

The S&P/TSX composite index gained 6.66 points to 15,465.54. The Canadian dollar found strength, jumping 0.47 of a cent to 91.35 cents US.

Scots were voting to decide if they want to leave the United Kingdom. Referendum results were expected early Friday in a vote that polls indicated was too close to call.

Observers say if Scotland stays as part of the U.K. it would remove a lot of the uncertainty that has developed on equity markets and has helped drive up the value of the U.S. dollar. Some traders have suggested a vote to leave could put a damper on the global economic recovery.

"There would be an effect. If they vote Yes, there would be an effect that is not currently factored into markets," said Paul Taylor, chief investment officer of asset allocation at BMO Asset Management.

He said that a Yes vote would raise questions in a number of jurisdictions and about whether Scotland would be admitted into the European Union.

On Wall Street, markets rallied with the Dow Jones industrials ahead 109.14 points at 17,265.99, closing at an all-time high. The S&P 500 index advanced 9.79 points to 2,011.36, also a record high, while the Nasdaq was up 31.24 points at 4,593.43.

The U.S. markets got a boost after the U.S. Federal Reserve signalled Wednesday that it still plans on keeping its key interest rate at a record low "for a considerable time" if inflation remains under control.

"The key is that it looks like the Fed is going to take a pragmatic, data-driven approach to the gradual unwinding of its extraordinary easy monetary conditions," said Taylor.

"The markets takes great comfort from that. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.