TSX Tumbles 140 Points, Gold Stocks Collapse -- Canadian Commentary

(RTTNews) - Canadian stocks plunged Wednesday, racing lower in the afternoon as crude oil prices collapsed.

Financials provided a measure of support after RBC turned in strong earnings.

The S&P/TSX Composite Index was down 138.53 points, or 0.94 percent, to 14,626.24.

The Gold Index plummetted 7 percent amid speculation the Federal Reserve will raise interest rates, denting gold prices.

Crude oil prices tumbled below $47 after the EIA reported a 2.5-million-barrel increase in crude oil inventories for the week to August 19, the same as a week prior.

Oct. WTI oil settled at $46.77/bbl on Nymex, down $1.33, or 2.8%, the lowest in a week.

Royal Bank of Canada (RY.TO) revealed earnings for its third quarter that increased 7 percent from last year. RBC also hiked its dividend.

Still, shares were down fractionally.

ProMetic (PLI.TO) has agreed to acquire Telesta Therapeutics (TST.TO) in an all share transaction.

American International Group Inc. (AIG) is in early discussions to sell insurance operations connected with Lloyd's of London to Canada's biggest pension fund, the Wall Street Journal reported citing people familiar with the matter.