Aug 21, 2015
By Michael Kramer
Markets in North America continued to rack-up losses after the release of fresh data – indicating a slowdown in China’s economy.
Toronto’s S*P/TSX composite index closed down 263.33 points – to 13,473.67.
The loonie also took a beating – losing 0.51 of a cent to close at 75.94 cents U-S.
And in the U.S. the Dow Jones was down a whopping 530.94 points to 16,459.75. The Nasdaq plummeted 171.45 points.
The economic turmoil propelled gold upward $6.40 to US$1,159.60 an ounce – and oil dropped $6.40, settling at US$40.45 a barrel.
The damage spreads across the globe.
Currencies are diving in emerging markets worldwide – over fears that developing economies are on the verge of a fall that could cripple them.
Investors in New York, Tokyo and Europe are worried that China and other major emerging economies will reduce their imports – and they fear a trade-disrupting currency war – as some countries quickly lower their currencies’ value – to gain a competitive edge.
But in an effort to calm the waters, many economists are saying they remain confident that the U-S economy is resilient enough to withstand a slowdown in the developing world.
They also say Europe’s economy appears to be emerging from its protracted slump.