UPDATE 2-Toronto stocks dive on more credit crisis fallout

Mon Sep 29, 2008 12:27pm EDT
 
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* Energy stocks fall 7 percent on oil's slide

* Financials drop 1.8 percent as bank jitters spread

* Manulife chief says insurer in "excellent" shape (Adds details)

TORONTO, Sept 29 (Reuters) - The Toronto Stock Exchange's main index tumbled more than 450 points on Monday, led by a retreating energy sector as oil prices sagged amid concerns that fallout from the U.S. financial crisis was spreading rapidly around the globe.

Markets were on tenterhooks as European authorities set up several bank rescue operations on Monday, including a plan to partly nationalize Fortis NV FOR.BR [ID:nLS357697]. In the United States, Citigroup Inc C.N, the largest U.S. bank, moved to acquire the bulk of Wachovia Corp WB.N [ID:nLT436737].

Meanwhile, markets awaited the U.S. House vote on the big financial industry bailout plan. For links to more stories, see [ID:nN22402709].

As part of co-ordinated action by the world's major central banks, the Bank of Canada increased the amount of its swap facility with the U.S. Federal Reserve on Monday to US$30 billion from US$10 billion. [ID:TOR003487]

"What's driving the Canadian market today is fear that this economic slowdown is going to be more global and more pronounced than people were previously giving credit to," said Michael Sprung, president of Sprung & Co. Investment Counsel.

"It's fear in the form that the bailout package in the U.S. is going to be insufficient to stem a global slowdown and, possibly, a global recession."   Continued...