Fund Library News Wire
| Friday, February 09, 2018
By Mike Keerma
North America’s major stock market indices rallied somewhat on Friday, but
it wasn’t enough to stanch a week of frenzied selling during the week that brought the
gauges to losses near or exceeding 10% from recent highs –
the commonly accept loss threshold that marks a correction. Climbing bond
yields in anticipation of rising inflation and further central bank
tightening precipitated the selloff as the stock indices erased any gains
made in the year to date. Toronto’s
S&P/TSX Composite Index dropped 3.7% on the week in a broad retreat across all sectors. The major
U.S. indices fell even more sharply on the week, as the
S&P 500 Composite Index and the
Nasdaq Composite Index both fell 5%. Commodities also retreated as
gold posted a 1.3% weekly decline, while
crude oil plunged 9% on the week. Meanwhile, the CBOE Volatility Index (VIX) – the
so-called “fear gauge” – spiked to a high of 46 on Tuesday, but retreated
somewhat through the remainder of the week and closed Friday at a still-high,
but a less intense, 29.06.
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