TSX Lower after Fed Taper Decision

Canada’s main stock index retreated on Wednesday after the U.S. Federal Reserve trimmed its monetary stimulus program and worries about emerging-market economies weighed on investor sentiment.

The Fed said it was cutting its monthly bond purchases by another $10 billion, citing an improvement in economic activity in the United States, even as the crisis in emerging markets flared.

Investors remained concerned about slowing economic growth and increasing credit risk in China, as well as perceptions of instability in emerging markets. Doubts about China, coupled with extreme volatility in the Argentine peso and the Turkish lira, have raised questions about the risks of investing in emerging markets.

Reuters

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