Stocks sank across North America, partly due to a warning from the International Monetary Fund that the world’s finances could be on shaky ground.
In its October Global Financial Report released today, the IMF notes that global near-term risks to financial stability have “increased somewhat, reflecting mounting pressures in emerging market economies and escalating trade tensions.”
On Bay Street, the TSX tumbled 336 points with losses in 10 of 11 sectors.
While the heavyweight energy and financials sectors dropped, Industrials took the biggest hit, falling 4.7 percent with Canadian manufacturing giant Bombadier’s stock losing 6.1 percent.
In New York, the Dow plunged by 831 points, marking its worst decline in eight months. The index was dragged by fears of soaring interest rates mixed with steep declines in market bellwethers Boeing, Caterpillar, Intel, and Apple.
The Nasdaq followed suit, falling 315 points with tech leaders Amazon, Microsoft, Alphabet, Facebook, and Microsoft mired in the red.
It’s been a scary October for the Nasdaq which has been in free-fall mode, plunging seven percent so far this month.
Oil prices slipped $2.38 to $72.58 US a barrel as American equity markets fell, even with Hurricane Michael closing 40 percent of U.S. Gulf of Mexico crude output.
The loonie lost more than half a cent as investors fled to the safety of the greenback, weakening by 62/100ths of a cent to $0.7661 US.
And on what was a volatile day in both sides of the border, gold also proved to be a safe haven for investors. The yellow metal rallied from earlier losses, ending the day $6.20 higher to $1,195 an ounce.