Meanwhile, European Central Bank president Jean-Claude Trichet says global economic growth this year will be "substantially below" forecasts made only about a month ago. It said the economies of the 16 countries that use the euro will shrink by 1.9 per cent in 2009, with the entire EU contracting 1.8 per cent. Investor sentiment was negative as the European Union said it is facing a "deep and protracted recession" as a consequence of the world financial crisis.
"And to the extent we don't get it, it should confirm in my mind that the strength of the downtrend is just so mean that you won't want to hang around for most things until the end of the summer of 2009."
But we are in a strong intermediate snapback that should mechanically carry through to the end of February or March," Martyn said. "If you look at the technical charts, they say we're in a long term downtrend - that's obvious. "We're all looking for the Obama bounce," added Martyn, who thinks there will be "some sort of lifting action" between now and mid-March. New York markets were closed for the Martin Luther King holiday while investors will be focused Tuesday on the inauguration of Barack Obama as the 44th president of the United States.Īnd there are high hopes that the new administration will boost investor confidence - at least in the short term - with details of huge stimulus package. The S&P/TSX composite index pulled back 78.92 points to 8,841.48 on top of last week's two per cent decline. and Europe are certainly giving us lots to think about," said Andrew Martyn, portfolio manager at Davis Rea Ltd.
TORONTO - The Toronto stock market closed lower Monday as sliding oil prices took another bite from energy stocks and a record-breaking loss at Royal Bank of Scotland along with indications of a deeper-than-expected slowdown in Europe prompted investors to sell financials.
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