US stocks opened lower, Canada tumbled 3%, Bank of Canada cuts key rate by 25bp

Two men watch the stock numbers in Toronto's financial district.(Tyler Anderson/National Post)
The Toronto Stock Exchange's main index fell hard at the open on Tuesday as easing commodity prices put pressure on resource issues and profit-taking took hold after two consecutive days of strong gains.

The S&P/TSX composite index was down 331.3 at 9,920.1 shortly after opening, with all but one of its 10 main groups lower.

Bank of Canada Governor Mark Carney. The Bank of Canada announced its latest interest rate policy decision on Tuesday. (Chris Wattie/Reuters)
The Bank of Canada cut its benchmark-lending rate Tuesday by a quarter point, citing an "uncertain" outlook for growth and inflation that poses "significant risks" to the economy. Furthermore, it indicated that another reduction "will likely" be in the offing. As a result of Tuesday's move, the Bank of Canada overnight rate stands at 2.25%.

Specialist Michael Sollitto, right, directs trades in J.P. Morgan on the floor of the New York Stock Exchange Monday, Oct. 20, 2008. Wall Street surged on a burst of optimism Monday, propelling the Dow Jones industrials up more than 400 points on more signs of a reviving credit market and comments from Federal Reserve Chairman Ben Bernanke. (AP Photo/Richard Drew)
In the first hour of trading, the Dow fell 15.05, or 0.16 percent, to 9,250.38 after falling more than 100 but also bobbing into positive territory. Broader indexes were also lower. The Standard & Poor's 500 index fell 2.54, or 0.26 percent, to 982.86. The Nasdaq composite index shed 4.26, or 0.24 percent, to 1,765.77.

On Monday, markets spiked on more signs of a reviving credit market and support from Federal Reserve Chairman Ben Bernanke for further steps to aid the economy, including an additional stimulus package.


Related Posts :

1. 10/20/2008 Market Recap - Positive Signs in Credit Market
2. $365 bln of Lehman CDS is going to be settled tomorrow
3. Iceland receives $6 bln rescue package

Sources :

1. The Financial Post: Bank of Canada cuts key rate, October 21, 2008
2. The Financial Post: Toronto stocks tumbles 3% on opening, October 21, 2008
3. Boston.com: Stocks open lower after previous session's rally, October 21, 2008

Please Note!
This is generally never true. Before buying or selling any stock you should do your own research and reach your own conclusion. See my Disclaimer on the bottom for more information.

You are welcome to republish this article, or any portion thereof.
Please, cite the actual/original source. I would be grateful if you could link back.