Monday, August 8, 2011

U.S. is 'always' AAA, Obama says as markets tumble - 8th Aug 2011

The Toronto Stock Exchange lost several hundred points Monday, as fellow markets around the world were hammered and investors fretted about debt issues on both sides of the Atlantic Ocean.

By midday, the S&P/TSX composite index was down nearly 300 points, following a net loss of nearly 800 points the week before. The TSX Venture Exchange tumbled as well, losing nearly 109 points. The Canadian dollar fell more than a cent to 100.97 cents US, just above par.

In New York, the Dow Jones industrial average also took a beating Monday, losing 2.5 per cent in trading as of noon, while the S&P index dropped 3.2 per cent and the Nasdaq composite index fell 3.3 per cent. Amid the volatility in the markets, U.S. President Barack Obama held a hastily arranged news conference to try to allay investors' fears.

"There will always be economic factors that we can't control: earthquakes, spikes in oil prices, slowdowns in other parts other world," Obama said. "But how we respond to those tests, that's entirely up to us. Markets will rise and fall, but this is the United States of America, and no matter what some agency may say, we've always been and always will be a AAA country." Read More