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Ugly numbers send markets plunging
Ugly numbers send markets plunging
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[{"type":"text","content":"\nUgly numbers send markets plunging\n\nAIG, Buffett suffering\n Mar. 2, 2009 (Baystreet.ca) -- 12:35 pm EST\nEquity markets on both sides of the border are still wondering what hit them, as Canadian investors take in foreboding economic figures, and their cousins stateside digest the misfortunes that befell AIG and Berkshire Hathaway. The S&P/TSX Composite Index was still searching for a bottom by midday Monday, having lost 477 points during the morning session to register at 7,646.02, more than wiping out last week's 2.2% advance. Statistics Canada reported the Canadian economy contracted at an annualized rate of 3.4% in the fourth quarter. The contraction worsened toward the end of 2008, with gross domestic product declining 1% in December. Financial stocks took some of the worst beatings; Scotiabank lost $1.70 to $27.01 and CIBC fell $3.06 to $40.09. Royal Bank of Canada shed $1.50 to $29.42, and insurer Manulife Financial fell $1.31 to $11.59. The Toronto energy sector sagged as EnCana Corp. fell $3.67 to $46.53 and Suncor Inc. stepped back $2.34 to $24.12. Other major stocks pulling the TSX lower included Research In Motion Ltd. down $2.28 to $48.56; Potash Corp, off $8.87 to $97.91; and Bombardier Inc, lower by 34 cents to $2.62. Nortel Networks Corp., operating under court protection from creditors, reported a fourth-quarter net loss of $2.14 billion U.S. as revenue slumped 15% to $2.72 billion. Its shares were unchanged at 10.5 cents. Looking ahead, on Tuesday, the Bank of Canada will make its latest interest rate announcement. Economists expect the central bank to slash its key overnight rate to 0.5% from 1%. Accordingly, the Canadian dollar shed 0.76 cents to 77.55 cents U.S., BAYSTREET\n \nAll 13 TSX sub-groups remained negative by noon, energy and metals and mining stocks down 9.1%, while financials were 6.9% to the bad. The TSX Venture Exchange was down 14.93 points to 846.73, while the Nasdaq Canada index downsloped nearly 30 points to 380.58ON WALLSTREETThe Dow Jones industrials index had lost 229.39 points by noon to trail Friday's close at 6,833.54. Friday, the index hit yet another 12-year low The Standard & Poor's 500 index retreated 26.87 points, at 708.22, the NASDAQ composite index lost 39.23 points to 1,338.61Investors were taken aback after AIG, once the world's largest insurer, reported it lost ...