Record increase in U.S. mortgage foreclosures unnerves traders
Canada's dollar and its main stock market traded lower on Wednesday, with the loonie losing more than half a cent to 95.87 cents US in late afternoon trading.
North American markets and commodities all sold off.
The Canadian dollar traded at 95.50 cents US early Wednesday afternoon, later reaching 95.87 cents. (Paul Chiasson/Canadian Press)
Toronto's S&P/TSX composite index rebounded from its earlier lows, when it was down more than 200 points, to trade 88 points lower at 11,676.
New York markets also fell with the Dow Jones industrial average down 50 points to 10,462. The Nasdaq composite index lost 15 points to 2,302 while the S&P 500 index shed four points to 1,117 in late day trade.
The July crude contract on the New York Mercantile Exchange fell 55 cents to $72.48 US.
The June gold bullion contract on the Nymex closed down $21.70 at $1,192.60 US an ounce.
American housing market a worry
There were lots of reasons to sell.
Traders were nervous about data showing a record increase in U.S. mortgage foreclosures.
More than 10 per cent of U.S. homeowners had missed at least one mortgage payment in the January-March period, the Mortgage Bankers Association said Wednesday. That number was up from 9.5 per cent in the fourth quarter of last year and 9.1 per cent a year earlier.
Traders also wondered whether moves announced yesterday by Germany to reduce currency speculation showed regulators were grasping at straws in response to Europe's debt crisis and whether Chinese growth would slow.
