By Jon S. Strebler
This ended up being a bad week for stocks everywhere. An hour before the close of US markets, the S&P is down 1.6% for the day and 3.4% for the week, with similar results for the Dow Industrials. Elsewhere, European stocks are at their lowest levels in two months. But Canada had it even worse, its Toronto exchange index dropping to two-year lows, due to relentless pressure on energy and other commodity prices upon which the country depends so much. Again, the key driver is lower oil prices and concerns that the trend will continue in 2016.
Further declines in China’s currency added to the day’s funk, as a cheap yuan makes it harder for US (and Canadian, and European, etc.) companies to compete, thus lowering their sales. Unaccustomed as it is lately to being the “bright” spot, gold has taken the morning’s $7 loss and turned it into a $7 gain for the ... Log in or subscribe to continue reading.