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Markets slip on Ireland's bailout

Monday, November 22nd, 2010 | 10:16 am

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North American stock prices traded lower Monday amid concerns that Ireland's application for financial assistance from its neighbours may not be the last bailout needed in Europe.

The Toronto benchmark, the S&P/TSX composite index, was down 63 points, or 0.5 per cent, to 12,894 late in the morning.

In New York, the Dow Jones industrial average was down 81 points, or 0.7 per cent, to 11,122.

The S&P 500 fell 7.4, or 0.6 per cent, to 1,192. The Nasdaq composite index fell 0.7, or 0.03 per cent, to 2,517.

After falling into a financial crisis brought on by mounting losses at three of its nationalized banks, Ireland formally requested help from its neighbours Sunday.

The rescue package from the European Union and the International Monetary Fund will likely not exceed 100 billion euros ($139 billion Cdn).

The euro fell 0.5 per cent against the U.S. dollar, to 1.3604. The Canadian dollar traded at 98.10 cents US, down 0.13 of a cent from Friday's close.

The January crude contract was down 92 cents to $81.06 US a barrel on the New York Mercantile Exchange and the December gold contract fell 70 cents to $1,351.60 US an ounce.

“It's been difficult for the European Union to get ahead and stay ahead of the market's concerns, despite the large sums they are clearly willing to dedicate,” said Robert Tipp, chief investment strategist for Prudential Fixed Income.

He said the announcement on aid for Ireland was not detailed enough to restore investor confidence.

CBC News

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