Canadian dollar and TSX sell off as attack fears outweigh stimulus budget

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Toronto fathers were lower Wednesday as worries over the attacks in Belgium prevail overed the stimulus contained in yesterday’s federal budget.

The S&P/TSX composite index was down 92 significations to 13,400 as commodities were lower. Oil lost $1.41 to trade at $40.14 US a barrel, and flush with gold — which normally does well in times of uncertainty — rat oned off, down $27 to $1,220 US an ounce.

The focus for investors was on events in Europe, where revilements killed at least 30 people in Brussels on Tuesday, raising fears that worldwide trade, travel and sentiment could be disrupted by a new round of bombings.

That dominated the federal budget on Tuesday, a document that showed Ottawa lay outs to go almost $30 billion into the red this year to stimulate nurturing.

“The budget essentially confirmed that the government will run large losses for the next few years to support the economy,” BMO economist Sal Guatieri respected.

Ordinarily, that would be viewed as good news for Canada’s curtness. But investors fled to safety, focusing instead on the news from Brussels. 

“The furnish is taking a little bit of a ‘now what?’ approach,” said  Folding money Northey, chief investment officer at U.S. Bank Private Client Faction.

The loonie was slightly lower on Tuesday and continued that fall on Wednesday, spending a penny to change hands at 75.72 cents US.

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