Newspaper article The Canadian Press

TSX Tumbles 236 Points: Market Steps Back after Series of Solid Gains

Newspaper article The Canadian Press

TSX Tumbles 236 Points: Market Steps Back after Series of Solid Gains

Article excerpt

TSX tumbles 236 points after string of gains

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TORONTO - The Toronto stock market tumbled more than 200 points Wednesday as markets gave back a chunk of gains collected over the previous four days of solid, triple-digit advances.

The S&P/TSX composite index dropped 235.64 points to 14,312.07, led by falling resource stocks as prices for oil hit a two-year low.

Losses picked up at mid-morning when reports surfaced that a gunman had opened fire at the National War Memorial in Ottawa, fatally wounding a soldier, then moved to nearby Parliament Hill and wounded a security guard before the attacker was himself shot dead. A manhunt was still underway in the national capital, with reports there may have been as many as three gunmen.

However, analysts thought that while there may have been a short, knee-jerk reaction to the shootings, the declines on the TSX had everything to do with markets stepping back after a recent big move upward.

"The market was trading down at the open, it was already in that trend, so the decline was to be expected," said Michael Greenberg, portfolio manager at Franklin Templeton Solutions Group

The Canadian dollar was down 0.12 of a cent at 88.94 cents US as the Bank of Canada announced that it was leaving its key rate unchanged at one per cent. In its monetary policy report, released at the same time as the rate announcement, the bank adjusted the economic growth prediction it made in July, nudging it up one-tenth of a point to 2.3 per cent for 2014.

Traders also took in a worse than expected reading on mid-summer Canadian retail sales. Statistics Canada reported retail sales fell 0.3 per cent overall in August. Economists had expected a flat reading.

U.S. indexes also gave up ground after a string of sharp run-ups, with the Dow Jones industrials down 153.49 points at 16,461.32, the Nasdaq falling 36.63 points to 4,382. …

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