U.S. STOKES PLUNGE

古月照今城 · 发表于 2008-1-18 13:48

ZT.

TORONTO (Reuters) - The Toronto Stock Exchange's main index took a dive on Friday, handing back big earlier gains as an economic stimulus package intended to stave off a possible U.S. recession was met with displeasure.

The bottom fell out of the TSX after the White House announced George W. Bush's plan for the world's biggest economy would be equal to about 1 percent of U.S. gross domestic product.

The package of tax cuts would total about $140 billion, and comes at the end of a week that saw North American stock markets battered amid rising recession fears.

"The 1 percent of GDP is seen as on the light side," said Fergal Smith, managing market strategist at Action Economics.

"The equity markets are in a downtrend so it's a struggle to hold on to any gains."

The S&P/TSX composite index was down 187.37 points, or 1.5 percent, at 12,608.26 after rising more than 165 points earlier in the session.

The index declined 6.6 percent in the previous three days.

Hardest hit were financials, down 1.4 percent, materials, down 2.2 percent, and energy stocks, which fell 1.1 percent. Those three sectors account for about 75 percent of the overall index.

Manulife Financial was off 75 Canadian cents at C$36.07, while Barrick Gold , the world's biggest bullion firm, led a sharp reversal among gold stocks, down C$1.33 at C$46.74.

The gold subsector -- the best performer so far this year -- tumbled 2.2 percent.

Also in that sector, Kinross Gold slipped C$1.42 to C$20.02 after it said both production and the cost of sales would rise in 2008. For details, see:

(Reporting by Jonathan Spicer; Editing by Renato Andrade)

[ 本帖最后由古月照今城于 2008-1-18 14:04 编辑 ]

古月照今城 · 发表于 2008-1-18 14:03

Can anyone say about what will affect here in Alberta ?

Oil prices fluctuate as investors eye stocks, express disappointment with Bush plan
Fri Jan 18, 2:23 PM
John Wilen, The Associated Press Email Story IM Story Printable View
By John Wilen, The Associated Press

NEW YORK - Oil futures fluctuated Friday as investors struggled with concerns about the American economy but held on to hopes that President George W. Bush's stimulus plan will work.

Investors were keeping a close eye on the stock market, which also bounced between gains and losses. They wonder whether Bush's plan, which includes US$145 billion worth of proposed tax relief, is enough to stave off a severe economic downturn.

Energy investors sometimes view stocks as a proxy for economic growth, so they were heartened earlier Friday when the Dow Jones industrials initially rose sharply, rebounding from Thursday's 306-point thrashing. However, in later Friday trading the Dow average was down more than 63 points.

But dismal employment, housing and manufacturing data released in recent days remain fresh in the minds of traders who worry demand for oil and gas will fall. And the Conference Board said Friday its index of leading economic indicators slid 0.2 per cent in December, more than the 0.1 per cent decline analysts expected.

"The reason why there's a (stimulus) plan is because things are awful," said James Cordier, president of Liberty Trading Group in Tampa, Fla.

Light, sweet crude for February delivery fell four cents to US$90.09 a barrel on the New York Mercantile Exchange, but prices alternated frequently between gains and losses. Earlier Friday, futures rose above $91.

Concerns about the economy are balanced by a view that demand remains strong in the rest of the word, where economic growth does not appear to be slowing, Cordier said.

"Global demand ... is going to keep oil prices north of $85 (a barrel)," Cordier said.

Indeed, the International Energy Agency and the Energy Department both expect domestic demand for oil to slow this year while global demand remains strong.

But investors of all types are having a hard time convincing themselves to buy oil, or stocks.

"The psychology for the U.S. economy and the stock market is just terrible right now," Cordier said.

Many of the concerns about the economy center on high energy costs. Oil prices rose 58 per cent last year, and hit a record price of $100.09 a barrel two weeks ago. At the pump, meanwhile, gas prices slid 1.1 cents overnight to a national average of $3.033 a gallon, according to AAA and the Oil Price Information Service, but are 82.4 cents, or 37 per cent, higher than a year ago.

"What no one has yet come to grips with is the huge cost of higher energy prices," said Peter Beutel, president of the energy risk management firm Cameron Hanover, in a research note. "Americans have spent $1.3 trillion more on energy in the seven years from 2001 to 2007 than in the seven years ended December 31st, 2000."

Other energy futures were mixed Friday. February heating oil futures fell 0.28 cent to $2.5007 a gallon on the Nymex while February gasoline futures rose 2.16 cents to $2.2884 a gallon. February natural gas fell 5.6 cents to $8.025 per 1,000 cubic feet.

In London, Brent crude for March delivery rose 27 cents to $89.02 a barrel on the ICE Futures exchange.

[ 本帖最后由古月照今城于 2008-1-18 14:05 编辑 ]

账号		自动登录	找回密码
密码			注册