MID-DAY: Dow plummets following North Korea summit cancellation; Aecon shares drop on Ottawa decision to block Chinese sale
Wall Street is taking a dive as a meeting between the US and North Korea is off. Just minutes before the open, the White House released a letter from Donald Trump to Kim Jong Un calling off the meeting. The Dow followed up by plummeting into the red, and the Wall Street index is currently down 227 points to 24,659.
Trump is also causing volatility in the auto sector as the US investigates how vehicle trade has impacted the American economy. This could allow Trump to slap a 25 per cent tariff on auto trade from other countries.
Across the border the TSX was red for a third day in a row and is down to 16,113. A drop in crude prices has primarily caused the Bay Street slump in the past few days. US crude is down to 71.14 as world producers vow to up production to offset proposed losses from Venezuela and Iran.
Aecon shares are falling 15 per cent following Ottawa’s move to block a takeover of the company by a Chinese firm due to national security concerns.
Despite the volatility, the Loonie has remained steady at 77.54 cents US.
Canadian company Saputo is boosting its dairy reach as it has announced plans to purchase Shepherd Gourmet Dairy in Ontario for $100 million. Reports say the company made about $57 million in its last fiscal year.