Oil Prices and Stock Markets

price oil: In addition to the GDP number showing contraction in the second quarter, Canada benchmark stock index was also dragged lower by oil prices that came back down to earth after a huge jump on Monday, according to CBC. The price of a barrel of oil lost more than $4 to trade just above the $45 US a barrel level when stock markets closed in North America. The S&P/TSX Composite Index closed at 13,481, down 377 points. The TSX is closely correlated to fluctuations in the price of oil, as many of the index heaviest hitters are tied to energy prices. Weakness in U.S. stocks was more based on some fresh numbers out of China showing an index of the country factory purchasing managers dropped to a reading of 49.7 points in August. So, too, is the loonie, which shed a quarter of a cent to 75.71 cents US. U.S. stocks also sold off, with the Dow Jones down 469 points to 16,058. (news.financializer.com). As reported in the news.