Loonie, markets fall on European debt worries


30/05/2012 23:42 AST  CBC News

The Canadian dollar fell and the Toronto stock exchange followed world markets sharply lower Wednesday amid growing worries about Europe’s debt crisis.

The dollar closed down 0.60 of a cent at 97.16 cents US and the S&P/TSX composite index finished lower by 176.04 points, or 1.5 per cent, at 11,433.26.

The Toronto stock market was also weighed down by concerns about the future of tech giant Research in Motion, which announced after the close Tuesday that it expects to report an operating loss in the first quarter and plans on significant layoffs and other cost-cutting initiatives this year.

New York markets were also well into the red with the Dow Jones industrial average down 160.83 points, or 1.28 per cent, at 12,419.86. The Nasdaq composite index fell 33.63 points, or 1.17 per cent, to 2,837.36 while the S&P 500 index lost 19.10 points, or 1.43 per cent, at 1,313.32.

Commodities also sold off, and the euro broke below $1.24 US for the first time since the summer of 2010.

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