CANADA STOCKS-TSX falls 2 pct as commodities sink on Japan, MF

Mon Oct 31, 2011 5:22pm EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* TSX falls 267.45 pts, or 2.1 pct, at 12,252.06

* Higher U.S. dollar drags down commodities

* Copper, gold, oil prices slide more than 1 pct

* Miners, energy firms sink

* TSX still up 5.4 pct on month (Adds details, analyst comments)

By Jon Cook

TORONTO, Oct 31 (Reuters) - Canadian stocks got spooked on Monday, falling more than 2 percent, with sliding commodities, Japanese market intervention, the failure of a major brokerage and Europe's lingering crisis all making investors jittery.

A surprise move by Japan to weaken its currency by buying U.S. dollars, caught the market off guard and had a negative trickle-down effect on equities, commodities and other risky assets. [MKTS/GLOB]

"We did not expect to wake up to see the Japanese buying currency," said Brendan Caldwell, chief executive of Caldwell Investment Management Ltd. "At the moment of actual crisis, there is no substitute for the U.S. dollar, nor will there likely be for the foreseeable future."   Continued...