Skip to main content

The Globe and Mail

At midday: Dow, TSX slump as IMF outlines risks

Trader Gregory Rowe works on the floor of the New York Stock Exchange Friday, Oct. 5, 2012. Stocks are rising in early trading on Wall Street after the government reported that the U.S. unemployment rate fell below 8 per cent for the first time in almost four years.

Richard Drew/AP

North American stocks traded near session lows in midday trading on Tuesday, amid ongoing concerns about the health of the global economy.

Shortly after noon, the Dow Jones industrial average was down 85 points or 0.6 per cent, to 13,498. The broader S&P 500 was down 11 points or 0.8 per cent, to 1445. In Canada, the S&P/TSX composite index was down 107 points or 0.9 per cent, to 12,312.

The moves come as a delayed reaction to a downgrade of global economic growth expectations from the International Monetary Fund, which left markets relatively flat near the start of trading. The IMF cut its forecast for 2013 to 3.6 per cent from a 3.9 per cent in July, but that assumes the United States can hold off its so-called fiscal cliff and the euro zone can integrate its economy.

Story continues below advertisement

The declines also come ahead of the start of the third-quarter earnings season for U.S. companies. Alcoa Inc. kicks things off on Tuesday, after markets close. This marks the first earnings season since 2009 in which expectations see a year-over-year decline in earnings as a slowing global economy bite into corporate performance.

Within the S&P 500, technology stocks were the hardest hit, falling 1.2 per cent. Health care and consumer discretionary stocks fell 1.1 per cent each and industrials fell 0.9 per cent. Energy stocks showed the only gains, rising 0.4 per cent.

Within Canada's benchmark index, materials fell 1.8 per cent, energy stocks fell 0.8 per cent and financials fell 0.7 per cent.

While global economic concerns usually weigh on the price of crude oil, oil actually moved higher. In New York, it traded at $90.52 (U.S.) a barrel, up $1.19, likely on concerns about rising tensions in the Middle East, where Turkey and Syria are now in open conflict.

In Europe, the U.K.'s FTSE 100 fell 0.5 per cent and Germany's DAX index fell 0.8 per cent.

Report an error Licensing Options
About the Author
Investing Reporter

David Berman has been writing about business and investing since 1995. He has written for a number of magazines, including Canadian Business and MoneySense. He worked at the Financial Post as an investing writer and daily columnist before moving to the Globe and Mail in 2008. More


The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

Please note that our commenting partner Civil Comments is closing down. As such we will be implementing a new commenting partner in the coming weeks. As of December 20th, 2017 we will be shutting down commenting on all article pages across our site while we do the maintenance and updates. We understand that commenting is important to our audience and hope to have a technical solution in place January 2018.

Discussion loading… ✨