Canadian Stocks Drop on Nortel Dip
Canadian equities closed broadly lower as warnings of a profit shortfall and job cuts from Nortel sent stocks reeling. The TSE 300 fell 244.83 points to 7506.50 as Industrial Products fell. Nortel was hit by multiple estimate cuts, and JDS Uniphase was slammed by negative comments from Merrill Lynch and CS First Boston. Research In Motion also was hurt by brokerage comments. All other subindexes except Pipelines fell, led by Utilities. Government of Canada bonds rose on safety buying. The Canadian dollar firmed vs. the U.S. dollar. Energy futures weakened as an API inventories report pointed to a large build in crude stocks.
European stocks closed lower as those markets followed a lower open in the U.S. In London, the Financial Times-Stock Exchange 100 index ended down 114.10 points, or 1.99%, to 5,614.00. In Germany, the DAX Index ended down 120.69 points, or 2.03%, to 5,817.52. In France, the CAC 40 finished off 85.17 points, or 1.63%, to 5,150.43.
In Asia, the markets finished higher. The Nikkei added 127.18 points, or 0.93%, to 13,765.51. In Hong Kong, the Hang Seng ended up 143.51 points, or 1.13%, to 12,851.41.