Toronto stocks fell, following slumps in other world indices, after debt problems at Dubai's government investment company rattled confidence in financial markets.
The S&P/TSX dropped 116.73 points, or 1%, to 11,520.17 at the open, with gold, energy and banking stocks leading the way. The gold price fell about $1.40, dropping from a record high and oil prices also eased.
Dubai World said on Wednesday that's it's seeking to delay repayment of much of its $59 billion US in debt. The news sent markets in Europe tumbling, with the Dow Jones Stoxx 600 Index suffering its biggest decline in three weeks, while China's Shanghai Composite Index fell 3.6%.
"The markets are likely to suffer sympathy pangs," with other world markets, said John Kinsey, a portfolio manager at Caldwell Securities in Toronto. "However, with the U.S. markets closed for Thanksgiving, trading in Canada is going to be slow."
The news helped the U.S. dollar retrace some losses, after it earlier fell to a 14-year low against the Japanese yen. The greenback also strengthened against emerging market currencies such as Brazil's real, as investors lost appetite for riskier assets.
The drop in commodities is weighing on the Canadian dollar, which fell versus its U.S. counterpart. At 8:30 a.m., the loonie was at C$1.055 to the U.S. dollar, or 94.79 US cents. It closed at C$1.0455 to the U.S. dollar, or 95.65 US cents on Wednesday.
