Markets sold off in the wake of today’s decision by the U.S. Federal Reserve board to cut the federal funds rate by 25 basis points to 3.5%
In its commentary the Fed said it sees no immediate end to the slowdown plaguing the U.S. economy. That sentiment sent investors rushing for the exits.
The TSE 300 fell 52.18 points to close at 7,472.98 points. Volume was 117 million shares.
Six of the TSE’s 14 sub-indices closed in the red, including the influential industrial products and financial services groups. Industrials closed down 1.98%, while financial services slipped 0.81%. Among the winners, the golds advanced 1.25%.
News of the OMERS bid for Oxford Properties sent the real estate sub-index soaring 3.8%. Oxford gained a hefty $4.41 to close at $23.46, a gain of over 23%. The property company was the TSE most active issue today with volume surpassing 12 million shares.
Nortel Networks was knocked back the number two spot today on volume of 10.6 million shares. Nortel slid 50¢ to close at $35.90.
Royal Bank of Canada’s third quarter earnings failed to impress investors. Its shares fell $1.52 to close at $51.30. Overall, five of Canada’s Big Six banks closed lower.
The Canadian Venture Capital Exchange escaped the carnage this afternoon. The CDNX index closed up 5.04 at 3,080.70. Trading was active on a volume of 29.0 million shares, with 165 advances, 178 declines and 574 issues unchanged.
In New York, markets sold off following the announcement by the Fed. The Dow Jones industrial average fell 145.93 points to 10,14.14, while the S&P 500 dropped 14.15 points to 1,157.26. The Nasdaq composite index fared worse, falling 50.05 points to 1,831.30, a drop over 2.5%.