Canada’s main stock index ended down more than 1.1 per cent in broad-based declines on continued economic growth concerns, while U.S. stock markets also fell.
The S&P/TSX composite index closed down 207.08 points at 18,441.84 on Thursday, giving up a good chunk of the 341 points of gains a day earlier that had snapped a six-day losing streak.
Stocks had climbed Wednesday in part on news that the Bank of England was reversing policy and going back into buying government bonds to help stabilize the British pound, fuelling speculation of potential easing by central banks elswhere, but the rally proved short-lived.
“Yesterday was perhaps a quick knee-jerk reaction to some of the news coming in,” said Kevin Headland, co-chief investment strategist at Manulife Investment Management. “Today is back to the current environment, the new paradigm shift of sharp rate hikes by the Federal…