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Markets brace for more volatility
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CBC News- North American investors appear to be in for another day of nervous stock watching on Tuesday as volatility reigned in European and Asian markets and U.S. stock futures pointed to early gains.
In Hong Kong, the Hang Seng index clawed back some initial losses, but still fell 5.6 per cent. Japan's Nikkei 225 stock average pulled back from a fall of more than four per cent to close 1.7 per cent lower at 8,944.48, its lowest closing since March 15, just days after the earthquake and tsunami disasters.
Australia's S&P/ASX 200 index moved into positive territory — closing up 1.2 per cent at 4,034.80 — while mainland China's key indexes fell modestly.
Key European bourses opened higher but by mid-session, London and Germany's main stock benchmarks had turned slightly negative. France's CAC 40 index was up marginally.
Dow futures were up 75 points at 10,801 at 8:30 a.m. ET, suggesting that the wholesale dumping of U.S. stocks might be at an end. But there too, volatility was a theme. Earlier in the morning, Dow futures had been up more than 300 points, but that gradually melted away as the morning wore on.
Another volatile day appeared likely for the resource-rich TSX Tuesday as many commodity prices swung wildly. Oil dipped as low as $75 US a barrel in early trading overseas but rebounded to trade at $82.11 a barrel by 8:35 a.m. ET, up 80 cents US from Monday's close.
Gold surged another $33 US an ounce to a new record of $1,747 US.
Investors will be looking for news that might be coming out of Tuesday afternoon's meeting of key U.S. Federal Reserve policy makers. No change in interest rates is expected, but the market will be watching closely for any hints that the Fed may be planning new measures to boost the faltering U.S. economy.
On Monday in Toronto, the S&P/TSX composite index closed with a loss of 491.21 points, or roughly four per cent, at 11,670.96. It has now lost 1,145 points over three trading days.
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