Red-Hot Resources

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Monday, December 01, 2008


Canadian Stocks Plunge in Broad Selloff

Lower commodity prices and confirmation of a U.S. recession triggered a broad-based selloff on the Toronto Stock Exchange Monday, erasing many of the gains built in six straight positive sessions for the S&P/TSX and pushing the index to its second-worst loss in decades.

The index was down 9.32 per cent, or 864.41 points, to 8,406.21, despite some reasons for optimism – Black Friday retail sales in the United States looked better than expected and Statistics Canada reported the Canadian economy grew more than expected in the third quarter.

“This is the time of year when historically you see optimism come back into the markets, even in the worst of times,” said Elvis Picardo, an investment strategist at Global Securities in Vancouver. “We had a good streak last week, and people were thinking maybe it wasn't as bad as we expected. But we're taking it on the chin again.”
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