CLOSING BELL: TSX takes a tumble on BoC interest hike, oil prices
The Bank of Canada announced an interest hike today, and Canada’s main stock market took a dive in response.
The BoC raised its rate to 1.5 per cent, but comments from Governor Stephen Poloz may also have spurred investors into sell mode. Poloz said the consequences of a trade war for Canada will likely be much worse than originally believed. That, combined with a drop in oil prices, added up to a 131 point loss for the TSX, which closed at 16,417.
On Wall Street, it was a familiar story. The Dow Jones took a tumble as U.S. President Donald Trump threatened, yet again, to slap China with more tariffs, this time on $200 billion worth of goods. The Dow closed at 24,700, down 219 points.
At press time oil is down $3.41 to $70.70 U.S. per barrel, gold is down $13.00 to $1242.40 an ounce, and the loonie is down close to three quarters of a cent, to 75.70 cents U.S.