Roger Biduk writes:
Blue chips in Toronto were sinking Tuesday afternoon, led by a drop in financial stocks after the Bank of Canada unexpectedly cut its key interest rate on Tuesday by three-quarters of a percentage point to a 50-year low of 1.50 percent and declared the Canadian economy to be in a recession.
The S&P/TSX composite index was off 79.87 points to 8,487.25.
The Canadian dollar, meanwhile, was trading 0.59 cents lower at 79.19 cents US.
Six of the TSX sub-groups traded higher this afternoon -- health-care stocks were up 3.05 percent followed by a 1.34 percent gain in gold issues and 0.95 percent rise in energy stocks.
Gold was gaining 40 cents to $769.70 US an ounce.
On the downside -- financial stocks fell 3.76 percent; telecom issues shed 2.18 percent and consumer discretionary stocks dipped 1.75 percent.
Meanwhile, the TSX Venture Exchange slipped 8.55 points to 689.63 and the NASDAQ Canada was off 5.32 points at 406.11.
On the corporate front -- Canada's largest bank Royal Bank of Canada says it plans to issue up to $2.3 billion in common shares to beef up its regulatory capital ratio.
Davie Yards Inc. has announced an agreement to get a US$10-million financial injection from shipbuilder Bergen Group of Norway and Davie client Cecon ASA, a Norwegian subsea installation contractor.
Major Drilling Group International Inc. climbed 15 cents to $11.11 after an August-October profit of $29.3 million, up from $22.6 million a year ago, as revenue rose 22 per cent. However, the global provider of mine-drilling services warned of a slowdown next year, especially in base metals.
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