The
Toronto Stock Exchange took a massive tumble Monday, plunging close to 900 points in the
worst one-day percentage loss since the crash of October 1987.
The composite index freefell 864.41 points or 9.3 per cent to 8,406.21 after gaining just over 1,100 points last week. The 1987 fall erased 11.3 per cent from the Toronto market.
Monday's drop erased more than half of the 14 per cent gain enjoyed a week previous.
Political turmoil in Ottawa didn't help, with the prospects that the federal Conservative minority government could soon be toppled.
Still, analysts noted investors have plenty of other worries right now, namely a terrible start in terms of U.S. holiday spending that's only added to instability concerns regarding the American economy.
Throw in another tumble in oil prices and the Canadian dollar flopped to .8017 U.S.
New York markets also sunk Monday with the conclusion of the Thanksgiving holiday.
The
Dow Jones fell
679.95 points or 7.7 per cent to 8,149.09 after powering ahead almost 10 per cent last week.
The
Nasdaq composite index fell to 1,398.07.
Statistics Canada said our economy expanded 0.1 per cent in September, which many economists argue will be the last month of growth before a prolonged decline.
But overseas markets were also down sharply on deepening worries about economic conditions.
London's FTSE 100 index fell five per cent, while Frankfurt's DAX dropped 6.1 per cent and the Paris CAC 40 slid 5.1 per cent.
Asian markets closed even lower with the Nikkei 225 stock average in Tokyo down 115.05 points, or 1.4 per cent, at 8,397.22 after advancing 7.6 per cent last week.
File photo