Markets close lower amid suspense about U.S. bailout plan
Dow Jones average not far from breaking even, recovering from early slide
North American stock markets closed modestly lower Wednesday after a mini-crash on Monday and a partial recovery on Tuesday.
Toronto's S&P/TSX composite index had been up 22 points and down 201 at times in a nervous day. It closed at 11,714.51, down 38.39 points or 0.3 per cent.
New York's Dow Jones industrial average had been up 31 and down 218. It closed at 10,831.07, down 19.59 points or 0.2 per cent.
Oil slipped back below $100 US a barrel, with light, sweet crude for November delivery priced at $98.56, down $2.08, in late New York trading. It had earlier been as low as $95.95, a sign of fear that spreading problems in the world's credit system will depress economies and reduce demand for oil.
In the background was suspense about the fate of Washington's $700-billion bailout plan, with congressional leaders scrambling to round up votes to revive it. The markets panicked Monday when the U.S. House of Representatives rejected the plan.
Grim U.S. manufacturing report adds to gloom
Adding to the gloom was a report suggesting that U.S. manufacturing activity contracted in September at the fastest rate since the aftermath of the Sept. 11, 2001, terrorist attacks.
Among the losers in Toronto were mining and energy stocks vulnerable to any slump in demand for commodities.
Inmet Mining was down $2.56, or 5.2 per cent, at $47. Potash Corp., the Saskatchewan fertilizer giant, was down $1.47, or 1.1 per cent, at $136.50. Suncor Energy, the Alberta oilsands producer, was down $3.30, or 7.5 per cent, at $40.70.
Gold stocks, a barometer of fear about the safety of paper money, were on the upswing early in the day but later saw their gains shrink.
Barrick Gold closed up 80 cents, or two per cent, at $39.77 after moving as high as $41.70. The metal itself fetched $869.20 US an ounce, down $5, in late New York trading, after moving as high as $889.10.
Canada's favourite tech stock, BlackBerry maker Research In Motion, slipped 52 cents, or 0.7 per cent, to $71.19 after gaining $5.74 on Tuesday. The stock, worth more than $100 last Thursday, took a two-day pounding after that when its financial results failed to meet high expectations.