Worries over sovereign debt in U.S. and EU stoke investment disquietness
Stock markets in North America took another tumble Wednesday morning after rebounding from previous losses on Tuesday, with one investment analyst calling yesterday’s gains a “dead cat bounce.” Speculation is increasing that the sovereign debt worries in both the U.S. and Europe might draw the global economy back into a recession. On Wednesday, the S&P/TSX composite index was down 41 points to 12,068. Meanwhile, the Dow Jones industrial average dropped 3.68 per cent. The Nasdaq composite fell 74 points to 2,408.36. The Canadian dollar also took a hit, down 1.52 cents to US$1.0064 by late-morning. While Asian markets had made some advancements, European markets were down on Wednesday. London’s FTSE fell 3.05 per cent, while the CAC in Paris and the DAX in Frankfurt each dropped more than 5 per cent.