http://www.cbc.ca/cp/business/071107/b110775A.htmlTORONTO - The latest bout of speculation that China will diversify more of its foreign currency stockpiles beyond the U.S. dollar helped send stock markets tumbling Wednesday morning.
Investors were also discouraged by a huge quarterly loss at General Motors Corp. while oil prices moved closer to US$100 a barrel - all against a background of concerns about the credit crisis rooted in the deteriorating U.S. mortgage market.
"We're selling off in both Canada and the U.S., the financials are one of the sectors that are getting hit, so we're seeing a continuation of credit concerns that we've seen in the last couple of months," said Peter Buchanan, portfolio manager at CIBC World Markets.
Toronto's S&P/TSX composite index moved down 81.68 points to 14,288.88 late in the morning.
A report that a senior Chinese official said China should diversify its US$1.4-trillion foreign exchange reserves into the euro and other strong currencies sent the U.S. dollar reeling and the Canadian dollar surging.
Investors moved to other currencies such as the loonie, which was up 0.67 cent to 109.19 cents US after going as high as 110.31 cents US.
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