The Toronto stock market finished off its lows for the day Tuesday, but was still negative, continuing a big two-day slide as nervous rumblings persist that another global recession could be coming.
The S&P/TSX composite index fell another 73.93 points to close at 11,177.91, after plunging as much as 400 points Tuesday, as the possibility of a Greek debt default continued to rattle investors. The index had hit its lowest level since last summer on Monday with a 375-point slide.
The loonie got its bearings and gained 0.02 cents to 94.83 cents U.S., after plumbing its lowest levels since early September 2010.
Investors have been concerned over the last couple of months about the slowing pace of economic revival, and the possibility that Greece might not be able to make key debt payments -- hamstringing the broader European economy -- raises the spectre that industrial demand for raw materials will fall.
Those fears have translated into deep price slides for oil and metals and pushed the resource-heavy TSX into bear market territory, generally defined by a drop of at least 20% from recent highs.
Finance Minister Jim Flaherty on Tuesday repeated his call for European leaders "to get ahead of the markets to overwhelm the problem" with a larger emergency fund
The TSX energy sector fell as the November crude contract on the New York Mercantile Exchange fell Monday to its lowest close since Sept. 28, 2010. Suncor Energy lost 10 cents to $25.18 and Canadian Natural Resources lost 38 cents to $28.67.
The gold sector lost ground as gold prices headed lower, with Barrick Gold faded $1.70 to $46.92 and Goldcorp Inc. gave back $1.94 to $45.83.
Financial stocks also contributed to the selloff as traders try to gauge the effect a Greek default would have on the global banking system. The group fell hard, with TD Bank down $1.31 to $70.36 and Royal Bank off $1.28 to $45.50.
The base metals sector turned positive late morning, as copper prices came back from early lows and the December contract was unchanged at $3.14 U.S. a pound after going as low as $3.04 U.S.
Copper is widely viewed as a barometer for the health of the overall global economy since it is used in the manufacturing of electronics, homes and infrastructure.
In the base metals sector, Teck Resources gained $1.80 to $30.49 and First Quantum Minerals rose $1.24 to $14.41.
In corporate news, pharmacy network Jean Coutu Group Inc. said profits increased nearly 53% to $66.4 million in the second quarter as it booked a gain from selling part of its stake in U.S. pharmacy chain Rite-Aid. Revenues increased to $635.2 million from $625.6 million and its shares fell 34 cents to $11.55.
SNC-Lavalin says it has acquired Interfleet Technology, an international rail technology consultancy group headquartered in Derby, England. Its shares declined $2.08 to $39.71.
ON BAYSTREET
The TSX Venture Exchange shed 56.06 to 1,333.34, while the Nasdaq Canada index gained 1.19 points to 402.68
Nine of the 14 Toronto subgroups remained in the red, with health-care falling 3.5%, gold slumping 3.4%, utilities going south 1.8%.
The five gainers were led by metals and mining, up 7.4%, global base metals, ahead 5.2%, and consumer discretionaries, picking up 0.7%.
ON WALLSTREET
In New York, stocks staged a furious closing rally, led mostly by banking shares, and so avoided moving closer to bear territory.
The Dow Jones Industrials swung as much as 400 to finish in the green by 153.41 points, or 1.4%, to 10,808.70
The S&P 500 moved into the green 24.72 points to 1,123.95, while the Nasdaq regained 68.99 points, or nearly 3%, to 2,404.82.
Investors continued to fret about Europe's worsening debt situation and possible slide into a global recession. However, Fed Chairman Ben Bernanke offered a grim assessment about the global economy but his pledge to take further action if necessary helped stocks
Apple's failure to announce an iPhone 5 caused investors to flee the stock, dragging down Nasdaq with it.
Shares of American Airlines parent company AMR bounced back after plunging 32% Monday on numerous reports that the company was facing a threat of bankruptcy. AMR is one of the few major U.S. airlines that did not go through bankruptcy in the last decade, but it is forecast to report its fourth straight year of losses in 2011.
Shares of Yahoo edged higher Tuesday, the day after the struggling online media company and ABC News announced they are teaming up to share news content, reporting resources and original videos.
YUM! Brands, the owner of KFC, Pizza Hut and Taco Bell, was to report earnings after the closing bell.
The price on the benchmark 10-year U.S. Treasurys gained, lowering the yield to 1.78% from Monday’s 1.79%. Treasury prices and yields move in opposite directions.
Oil for October delivery surrendered 81 cents to $76.80 U.S. a barrel.
Gold futures for December delivery shaved $41.70 to $1,616 U.S. an ounce.
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