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A Down Week for the Market

The Toronto stock market closed lower at the end of a losing week as the European debt crisis continued. The S&P/TSX composite index lost 23.26 points to 11,462.06 while the TSX Venture change edged 7.96 points lower to 1,505.14.  Worries about Europe carved 430 points or 3.61% from the main Toronto index this past week.  “This week has been all about Europe and we’re down because of Europe,” said Gareth Watson, vice-president investment management and research at Richardson GMP Ltd. The Canadian dollar was down 0.23 of a cent to 95.29 cents US. New York markets closed lower with the Dow Jones industrial index down 25.77 points to 11,231.78, adding up to a loss of 564 points or 4.78% this past week. U.S. markets had earlier found support from a positive start to Black Friday, the kickoff of the retail holiday shopping season in the U.S.  “It would appear at least the Black Friday sales are hopefully going to be meeting the expectations of what the street is looking for this year,” added Watson.  But worries about Europe trumped that early enthusiasm going into the weekend.

Markets have been in a deep funk for weeks over the failure of eurozone leaders to come up with a comprehensive fix for the debt crisis, which threatens a fragile global recovery, the region’s financial system and the euro itself.  There have been calls for the European Central Bank to deal with the debt crisis by declaring itself lender of last resort and printing money to buy the bonds of debt-laden eurozone countries. But both the ECB and the German government are loath to do that, warning that it lets the more profligate countries off the hook for their bad practices.  European bourses had closed higher as London’s FTSE 100 index was up 0.72%, Frankfurt’s DAX advanced 1.19% and the Paris CAC 40 gained 1.23%.

The TSX closed at 11462, down -430 points or -3.62% over the past week. YTD the TSX is down -14.74%.
The DOW closed at 11232, down -564 points or -4.78% over the past week.YTD the DOW is down -2.99%.
The S&P closed at 1159, down -57 points or -4.69% over the past week.YTD the S&P is down -7.87%.
The Nasdaq closed at 2442, down -131 points or -5.09% over the past week.YTD the Nasdaq is down -7.95%.
Gold closed at 1686, down -40.00 points or -2.32% over the past week.YTD gold is up 18.65%.
Oil closed at 96.77, down -0.68 points or -0.70% over the past week.YTD oil is up 5.52%.
The CAD/USD closed at 0.9535, down -0.0198 points or -2.03% over the past week.YTD the CAD/USD is down -4.90%.


Souces: Bloomberg, Investment Executive, Advisor Analysis