Investors reined in their optimism yesterday, sending the Toronto stock market triple digits down, driven by weaker oil prices and a sense of caution about economic recovery.
The pullback suggested investors aren’t convinced the economy won’t experience more turbulence in the short term.
On the TSX, the energy sector backed off 2.8 per cent as a weekly report from the U.S. Energy Department showed that inventories rose more than expected last week. Light crude for September delivery fell $3.88 to $63.35 US a barrel on the New York Mercantile Exchange.
Units of Jazz Air Income Fund dropped nearly six per cent to $3.45 after the regional carrier said it would cut its cash distributions to unitholders as it announced a new cost-cutting agreement with Air Canada.