Falling commodity prices weighed heavily on Toronto stocks Wednesday as mounting evidence of a recession south of the border cast doubt on U.S. demand.

The Canadian dollar had its biggest single-day plunge in nearly 46 years, falling 2.19¢ against the U.S. dollar as a bleak outlook for the world’s economies also pushed down the price of key commodities such as gold and oil.

Canada’s dollar ended the day at 98.49¢, the lowest close in a month.

The S&P/TSX Composite index closed down 427.32 points, or 3.25%, at 2,709.38.

All of the 10 major TSX groups sank today, with the financials group remaining flat until a late-day plunge led to the sector closing down 0.67%.

CIBC shares lost 58¢, or 0.95%, to end at $60.17, while Bank of Montreal stock gained 21¢, or 0.50%, to close at $42.10.

Meanwhile the materials index took a long tumble, dropping 6.11%, as gold took a hard hit and the index fell 4.99%.

Barrick Gold Corp. shares lost $3.32, or 6.74% and Kinross Gold Corp. shares dropped $1.85, or 7.66%, to close at $22.30.

Gold for April delivery plunged US$59, or 5.9%, to close at US$945.30 an ounce, its biggest one-day fall since 2006.

The base metals sector also sank, losing 6.21%, as shares in Lundin Mining Corp. shares lost 78¢, or 10.53%, after the Vancouver-based firm announced Q4 losses of US$436.6 million.

The influential energy index dropped 4.62%.

Crude oil for April delivery fell US$4.94, or 4.5%, to close at US$104.48 a barrel on the New York Mercantile Exchange.

In individual stocks, Mega Brands Inc. shares dropped 62¢, or 15.74%, to close at $3.32, after it reported a $30-million charge related to recent toy
recalls.

The junior S&P/TSX Venture composite index closed down 71.23 points, or 2.79%, at 2,484.99.

In New York, U.S. stocks tumbled, despite the surge in Visa Inc. stock after it sold 406 million shares at US$44 each to raise US$17.9 billion in the largest initial public offering in U.S. history.

The Dow Jones industrial average lost 293 points, or 2.36%, to end at 12,099.66. The S&P 500 fell 32.32 points, or 2.43%, to close at 1,298.42.

As well, the tech-heavy Nasdaq composite index fell 58.30 points, or 2.57%, at 2,209.96.