Financial Update: Tuesday August 9, 2011
- TSX -491.21 to 11,670.96
- Dragging the TSX below the 12,000 benchmark after an unprecedented credit rating downgrade of U.S. government debt by Standard and Poor's added momentum to a four-week-old sell-off, to its lowest close in a year and the biggest one-day drop since December 1, 2008.
- DOW -634.76 to 10,809.85
- Plunged below the 11,000 mark as Standard & Poor's also on Monday downgraded the credit ratings of mortgage lenders Fannie Mae, Freddie Mac, which between them own or guarantee about half of all U.S. mortgages, and other agencies linked to long-term U.S. debt. Their downgrade could mean higher mortgage rates for consumers. Investors were unimpressed with remarks from U.S. President Barack Obama early in the afternoon where he essentially dismissed the S&P downgrade. He tried to reassure investors and the public that the nation's leaders need only show more "common sense and compromise" to tame a staggering accumulation of debt.
- Dollar -$1.25 to 100.92 USD
- As nervous investors piled into U.S. Treasury's and precious metals while demand concerns sent oil and metal prices reeling.
- Oil -$5.57 to $81.31 USD per barrel
- Concerns the U.S. economy could be slipping back into recession and demand worries continued to push oil to its lowest price of the year.
- Gold $+61.40 to $1713.20 USD per ounce charging to a new record high close.
