North American stock markets closed sharply in the red Monday as more evidence of a continuing slowdown in China, the world’s second-largest economy, delivered a blow to commodity prices.
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With losses seen across the board, the Toronto Stock Exchange’s benchmark Standard & Poor’s/TSX Composite Index tumbled 373.99 points, or 2.8 percent, to 13,004.58 points on the closing bell, the lowest level after October. 17, 2013, when the index settled at 13,036.36 points.
“People traditionally buy gold for safety reasons, to diversify away from other assets”.
The Canadian dollar was down one-third of a cent and USA index futures were negative before stock markets opened Monday.
The loonie slipped 0.04 of a USA cent to 74.62 cents United States, just above an 11-year low of 74.53 cents US set last week. And it is reported Monday that the politicians said prices of Valeant’s heart drugs Nitropress and Isuprel increased by 212 percent and 525 percent from the day when Valeant acquired the rights to sell them.
“A lot of traders are hoping that this is the end of the pullback”, said Gordon Charlop, a managing director at Rosenblatt Securities in New York, of the move in equities. “Last week Hillary Clinton was talking about making a few of these companies’ spend on R&D mandatory”.
In corporate news today, China has fined Canada’s Bombardier (BBD.B.TO) and a unit of local trainmaker CRRC Corp a small amount each for setting up a joint venture without permission.
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Energy stocks, bolstered by higher crude prices, climbed 1.0 per cent. Canadian Natural Resources rose 2.1 per cent to $26, while Suncor Energy Inc advanced 0.8 per cent to $34.89.
