Make us your home page

Today’s top headlines delivered to you daily.

(View our Privacy Policy)

Canadian financial markets feel U.S. pain

Canada has been caught up in concerns over the world's economic prospects as stock markets had their biggest one-day decline in two years and the dollar plunged.

The Toronto Stock Exchange composite index lost 436 points Thursday and more than 200 points on Friday, blamed by economists on nagging doubts over the economic realities in the United States, Canada's biggest trading partner.

The drop on Canada's major exchange put the index 8 percent lower than where it was at the start of the year.

As Canada is an oil-exporting nation, the drop of more than $5 a barrel cut the Canadian dollar's value to about $1.02 U.S., down from more than $1.06 a week earlier.

Economic data showing weaker U.S. manufacturing levels, lower consumer spending and slower job growth "suggests there is now the risk of a serious economic slowdown," said Sid Mokhtari of CIBC World Markets.

News on Friday that Canada's jobless rate was the lowest since December 2008 at 7.2 percent, down from 7.4 percent in June, did little to help the stock market or dollar.

The economy created 7,100 jobs last month in addition to the 28,400 positions added in June.

Interim party leader pick draws criticism

Canada's New Democratic Party is coming under criticism for naming a former "card-carrying" Quebec separatist as its interim leader.

Nycole Turmel was a member of the independence-seeking federal Bloc Quebecois party before being elected to Parliament in May for the socialist New Democrats in Hull-Aylmer, Quebec.

Turmel, the former president of the Public Service Alliance of Canada, has temporarily replaced the New Democrats' leader, Jack Layton, as he battles a recurrence of cancer.

She was also a member of Quebec Solidaire, a provincial sovereignty movement, until the past week.

Now serving as leader of the official opposition party in the House of Commons, Turmel said she supports the two parties' policies on unions and social justice issues, but not on separation from Canada.

News in brief

• A proposed $7 billion pipeline to transport Canadian oil to Texas refineries is "incredibly important for the energy security of the United States" and will be built safely, Foreign Affairs Minister John Baird said. He told Secretary of State Hillary Rodham Clinton at a meeting in Washington there are "some legitimate concerns" over pipeline security that will be addressed. Clinton said she expected a decision on whether to proceed with the Calgary-based TransCanada project by the end of the year.

• Canada's foreign affairs department has learned that the Mexican judicial system has dropped all charges in the explosion last year that killed five Canadians at a Playa del Carmen hotel. Investigators said there was an improper extension of a natural gas line at the Grand Riviera Princess Hotel that caused the blast. A judge ruled the evidence for convictions of homicide and negligence was "not strong enough to consider that there was a crime."

Facts and figures

World economic conditions hit Canada's dollar hard during the past week as it dropped Friday to $1.0221 in U.S. funds. The U.S. greenback advanced to 97.84 cents Canadian, before bank exchange fees.

The Bank of Canada's key interest rate remains at 1 percent, while the prime lending rate is 3 percent.

Canadian stock markets are lower, with the Toronto exchange index at 12,170 points and the TSX Venture Exchange at 1,809 points.

Lotto 6-49: (Wednesday) 6, 17, 21, 28, 31 and 38; bonus 43. (July 30) 6, 7, 10, 19, 21 and 45; bonus 16. Lotto Max: (July 29) 1, 2, 3, 17, 24, 35 and 36; bonus 30.

Regional briefs

• Ruth Miriam "Babs" Asper, wife of the late Israel Asper, one of Canada's media icons, died suddenly in Winnipeg. She was 78. Israel Asper founded Canwest Global Communications. She was "an ardent supporter of the arts and education across Canada," the University of Manitoba said in a statement.

• A wagon ride in the country at a Christian children's camp near Lennoxville, Quebec, resulted in chaos when a farm tractor and trailer flipped over, resulting in injuries to 53 people, mostly children. There were "no life-threatening injuries" at the Evangelical Baptist Church camp, police said.

Jim Fox can be reached at

Canadian financial markets feel U.S. pain 08/06/11 [Last modified: Saturday, August 6, 2011 8:11pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times


Join the discussion: Click to view comments, add yours

  1. No toll lanes north of downtown Tampa in three of four interstate proposals


    TAMPA — Express lanes may not be coming to downtown Tampa after all. Or at least not to the stretch of Interstate 275 that goes north through Bearss Avenue.

    Seminole Heights resident Kimberly Overman discusses the new interstate options with V.M. Ybor resident Chris Vela (left), Hillsborough County Commissioner Pat Kemp and HNTB consultant Chloe Coney during a Tampa Bay Express meeting Monday night at the Barrymore Hotel. [CAITLIN JOHNSTON  |  Times]
  2. Pinellas grants St. Pete's request to add millions to pier budget

    Local Government

    Times Staff Writer

    The Pinellas County Commission has granted St. Petersburg Mayor Rick Kriseman's request to dedicate millions more toward the city's new pier.

    The St. Petersburg City Council on Thursday  voted 7-1 to appropriate $17.6 million for the over-water portion of the Pier District. This is a rendering of what the new Pier District could look like. [Courtesy of St. Petersburg]
  3. Man injured when small helicopter crashes into Odessa home


    ODESSA — A small manned helicopter crashed into the roof of a house in northwest Hillsborough County on Monday, injuring a pilot, officials said.

    Rescuers respond to a crash of a small helicopter on the roof of a home in the Odessa area on Monday. [Hillsborough County Fire Rescue]
  4. State investigation cites multiple failures in death of Largo child


    LARGO — It was sweltering in the bedroom of the Largo mobile home the day a child welfare case manager visited in July.

    Liz Rutenbeck, 24, poses with her son William in a Facebook photo. Baby William Hendrickson IV died while his mother was in jail after police said his father left ihim in a sweltering room.  A state investigation into the boy's death found multiple failures on the part of the child welfare system.
  5. 'Siesta Key' star punched in face, not sure who did it


    TAMPA —Alex Kompothecras, cast member on MTV's reality show "Siesta Key," tells police he was punched in the face outside a bar in Tampa's SoHo district.

    Alex Kompothecras, Juliette Porter, Pauly Apostolides, Madisson Hausburg, Chloe Trautman, Garrett Miller, Kelsey Owens and Brandon Gomes pose for a photo in Siesta Key in June before the debut of the MTV reality series Siesta Key. [
EVE EDELHEIT   |   Times]