The Toronto Stock Exchange lost ground early Friday as data showed the U.S. economy doing worse than expected and investors sold off in advance of a high-profile speech from the head of the Federal Reserve.
Shortly after the open, the S&P/TSX composite index was down 75.56 points, or 0.62 per cent, to 12,208.75.
Fed chairman Ben Bernanke was scheduled to speak in Jackson Hole, Wyoming, at 10 a.m. ET. Indications in that speech — or a lack of — that more stimulus measures are on the way to help the struggling U.S. economy were likely to set the tone for the Friday’s trading.
This would follow news that the U.S. economy grew at an annualized rate of one per cent in the second quarter, downgraded from a previous government estimate that put it at 1.3 per cent.
More specific to Canada, Royal Bank of Canada reported lower-than-expected third-quarter earnings, and Cameco Corp. announced intentions to take over uranium junior Hathor Exploration Ltd. for $550 million, or $3.75 a share.
The Ontario Securities Commission halted trading in Canada of Sino-Forest Corp. after saying company officials did things “they know or reasonably ought to know perpetuate a fraud.” Its shares were seeing major losses in U.S. trading Friday morning.
On the New York Mercantile Exchange, crude oil was down $1.19 US to $84.11 US a barrel, while gold was up $11.90 US to $1,775.10 US an ounce.
The Canadian dollar was down 38 basis points to $1.0096 US.
On U.S. stock markets, the Dow Jones industrial average fell 60.85 points, or 0.55 per cent, to 11,088.97 shortly after Friday’s open. The Nasdaq composite index was off 2.28 points, or 0.09 per cent, to 2,417.35.
European markets were weak. The United Kingdom’s FTSE was down 70.87 points, or 1.38 per cent, to 5,060.23. The French CAC fell 74.36 points, or 2.38 per cent, to 3.044.64. In Germany, the DAX was off 140.31 points, or 2.51 per cent, to 5,443.83.
Asia markets were mixed. Japan’s Nikkei index was up 25.42 points, or 0.29 per cent, to 8,797.78. In Hong Kong, the Hang Seng was down 169.6 points, or 0.86 per cent, to 19,582.88. Mainland China’s Shanghai composite was down 3.07 points, or 0.12 per cent, 2,612.19.
On Thursday TSX fell 59.5 points, or 0.48 per cent, to 12,284.31. The Dow Jones declined 170.89 points, or 1.51 per cent, to 11,149.82, and the Nasdaq was down 48.06 points, or 1.95 per cent, to 2,419.63.
