North American pedigree markets were sharply lower at midday Wednesday after the price of oil go by escaped below $27 US a barrel.
West Texas Intermediate crude was job at $26.87 US a barrel, down 5.6 per cent on the day, at midday.
That escaped drag the Dow Jones industrial average down by 2.9 per cent, while the TSX cut 2.8 per cent.
Toronto Stock Exchange’s S&P/TSX composite index was down 338 bring ups at 11,660 at midday. On Tuesday, the index ended the session up 60.07 matters — only the third positive day since the Christmas break.
In New York, the Dow level 465 points to 15,559 and the broader S&P 500 index dropped 44 scores to 1,834.
The Canadian dollar was down slightly from yesterday’s close, right after jumping sharply on the Bank of Canada’s announcement that it was deviate from its key interest rate unchanged.
The loonie rose to 68.93 cents US after the 10 a.m. ET word, but by midday it was off .06 of a cent at 68.53 cents US.
The central bank remarked it was keeping the rate unchanged as inflation has remained within its ideal object range. The bank also reduced its 2016 economic growth map to 1.4 per cent from its autumn forecast of two per cent.
A global trounce of stock prices that started overnight in Asia has spread to North America from the start of exchange.
rt of the bad news is oil, but there are also doubts about China’s budgetary health after its GDP growth for the last quarter dropped to 6.8 per cent with tons economists saying the real figures could be much lower.
The IMF’s augury Tuesday that global growth will slow and fear of more distant turmoil in China’s markets weighed on the price of oil.
To reinforce the trouble in the oil sector, Noblewoman Dutch Shell announced its quarterly profit would fall by beside 42 per cent.
Corporate earnings season is about to begin and there are dismays that profits will disappoint throughout North America.
Overnight the Hong Kong and Ja nese pedigree markets fell more than 3.7 per cent. European bloodlines followed and the Mexican peso and Russian ruble fell to record means.