Stock markets ended lower on Thursday as traders were disappointed with the outcome of the European Central Bank's attempt to tackle the debt crisis in the region.
Hopes were high the ECB would announce more immediate steps, considering the ECB president Mario Draghi's pledge last week to do "whatever it takes" to keep the euro intact, but those expectations were quickly dashed, sending markets in Europe lower as well.
Toronto's S&P/TSX composite index closed down 112.03 points to 11,506.50 and the TSX Venture Exchange moved down 15.70 points to 1,173.63.
The Canadian dollar was down US0.20¢ to US99.29¢.
On Wall Street, the Dow Jones industrial average fell 97.25 points to 12,878.88 and the broader S&P edged down 10.32 points to 1,365. The Nasdaq was off 10.44 points at 2,909.77.
The ECB disappointed markets once again after Draghi's earlier comments pumped up expectations, BMO senior economist Benjamin Reitzes said in a note.
"With inflation expected to fall below 2% in 2013 and downside growth risks, the ECB's lack of bold action to boost the crisiswracked region borders on irresponsible."
In Europe, Germany's DAX ended down 2.2% at 6,607 while the CAC-40 in France fell 2.7% to 3,232. The FTSE 100 index of leading British shares was down 0.9% at 5,662.
However, Draghi did say that more action would be taken, in particular a new attempt to purchase government bonds in an effort to lower borrowing costs for Spain and Italy. Specific details are likely to be revealed in the coming weeks, Draghi said.
"Draghi can talk all he wants, but the trouble is that (the ECB) really isn't (like) the Fed in the U.S. - it doesn't have the same capabilities," said Chris King, portfolio manager at Morgan, Meighen and Associates.
"Quite frankly, U.S. markets had a pretty good run, and Europe had a pretty good bounce up in the last little while ... this hasn't really pulled back that much."
The TSX energy sector was down 2% as the September crude contract on the New York Mercantile Exchange closed $1.78 lower to US$87.13 a barrel.
The gold sector was down 0.6% while the price of gold was down for the third consecutive session. December gold fell $16.60 to close at US$1,590.70 an ounce.
Kinross Gold Corp. has replaced president and chief executive Tye Burt in a decision it says is necessary to move forward with its plan to improve the Toronto-based miner's lagging performance. Shares were down 45¢ to $7.56.
September copper moved down 8.4¢ to US$3.29 a pound.
