'B' Word Whispered On Tsx

Summary


"Financial markets around the globe, and equity markets in particular, seem to be increasingly pricing in the recession scenario in the U.S," said Craig Wright, chief economist at RBC Financial Group.

In the past, Canadian markets had been cushioned somewhat from troubles in the United States because the Toronto Stock Exchange could depend on blue-chip companies such as banks, oil and gas producers and metals miners. Their share prices had risen sharply because of soaring demand for commodities from Asia's rapidly growing economies.

On Monday, oil prices fell to below US$90 a barrel and have now retreated more than US$10 from a record above US$100 a barrel a few weeks ago on worries a flagging U.S. economy would dampen resource demand.

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Extract


'B' Word Whispered On Tsx

605-point drop sparks fears of bear market

By David Friend

TORONTO -- The Toronto stock market was slammed with its biggest single-day loss since the tech bubble...

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