CANADA STOCKS-TSX dives nearly 4 pct in global equities flight

Thu Sep 22, 2011 10:19am EDT
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   * TSX drops 460.76 points, or 3.85 pct, at 11,494.25
 * Lowest level since August 2010
 * Investors flee global equities in flight to safety
 * All 10 main sectors lower, base-metal miners weigh
 (Adds details, analyst's comment)
 By Andrea Hopkins
 TORONTO, Sept 22  (Reuters) - Toronto's main stock index
fell nearly 4 percent on Thursday morning to its lowest point
in more than a year as investors around the world fled global
equities in a flight to safety after the U.S. Federal Reserve
shook market confidence with a bleak economic outlook.
 Wall Street stocks fell more than 3 percent and European
stocks were down more than 4 percent to a two-year low as
risk-aversion gripped global markets.
 "It doesn't matter what sector you look at, you're looking
at substantial drops in value here today, and I guess given the
world situation, we probably knew something like this was
coming," said Fred Ketchen, director of equity trading at
 "There's fear, there's worry, there's talk about lack of
growth. It'll get overdone. We always do it. We overdo it on
the upside and overdo it on the downside."
 At 9:58 a.m. (13:58 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down 460.76 points, or
3.85 percent, at 11,494.25, its lowest point since August 2010.
All 10 main index sectors were lower.
 A grim outlook for the U.S. economy from the Federal
Reserve on Wednesday and signs of a slowdown in China and
Germany sent world stocks tumbling and drove investors into
safer currencies and government bonds.
 European stocks fell more than 4 percent overnight to a
two-year low, helping drag global equities to a fresh one-year
 The U.S. dollar rose to a seven-month high against major
currencies as flight to safety swept through financial markets.
 The Fed set the ball rolling on Wednesday when it launched
"Operation Twist", a plan to lower borrowing costs by selling
or not renewing short-term debt in favor of longer bonds.
 The move was expected, but the Fed's statement of the
rationale behind it was stark. There were "significant downside
risks" to the U.S. economy, it said.
 ($1=$1.03 Canadian)
 (Reporting by Andrea Hopkins; editing by Peter Galloway)