Canadian Stocks Plunge Amid Global Policy Shocks and Economic Data

The Canadian stock market experienced a significant decline on January 21, 2010, as a series of policy shocks worldwide and economic data releases contributed to volatility in asset prices. The S&P/TSX Composite Index fell by 1.8%, with Inmet mining plummeting 15.4% and Iamgold Corp falling 7.82%. The decline in the Canadian dollar against the US dollar, down 0.57% to 1.0520, added to the market's woes. The US President's call for limiting the size and trading activities of financial institutions, as well as the US Labor Department's report of initial jobless claims rising to 482,000, further contributed to the market's sentiment.

Key Takeaways:

• The S&P/TSX Composite Index fell by 1.8% to 11,469.10, with a decline of 210.22 points.
• Inmet mining plummeted 15.4%, while Iamgold Corp fell 7.82% in response to global policy shocks and economic data releases.
• The Canadian dollar depreciated against the US dollar, with one US dollar purchasing 1.0520 Canadian dollars on January 21, 2010, down from 1.0463 on January 20.
• The US President called for limiting the size and trading activities of financial institutions to reduce risk-taking and prevent another financial crisis.
• The US Labor Department reported initial jobless claims rising to 482,000 in the week ended January 16, a two-month high.
• China's gross domestic product grew 10.7% last quarter from a year before, the fastest pace since 2007.

Statistics:

• The S&P/TSX Composite Index fell 1.8% to 11,469.10.
• The February gold contract traded down 0.86% to 1,103.00 US dollars an ounce.
• Copper futures traded down 1.49% to 3.31 US dollars a pound.
• Inmet mining fell 15.4%.
• Iamgold Corp fell 7.82%.
• Barrick Gold declined 3.5%.
• Goldcorp Inc. slipped 3%.
• Crude oil for February delivery tumbled 2.14% to 76.08 US dollars a barrel on the New York Mercantile Exchange on January 21, 2010.

Sources:

• XINHUA via COMTEX, January 21, 2010
• China's statistics bureau