North American stock markets got off to an exceptionally rough start this week, indicating that last week’s US$700 billion bailout package by the U.S. government failed to calm the nerves of jittery investors.

Stocks both in Canada and the U.S. plunged early in the day on Monday following steep losses in Asia and Europe.

The S&P/TSX composite index had plunged 856 points as of 11 am, with all 10 main groups down sharply.

The energy group was down more than 15%, led by a 12.63% drop for Canadian Natural Resources Ltd. shares, which were trading at $55.85. Suncor Energy shares were down 13.86% to $31.39.

Oil futures had lost US$3.84 in early-day trading, with U.S. light crude for November delivery at US$90.04 per barrel by 10:24 a.m.

South of the border, the Dow Jones industrial average dropped below the 10,000 mark on Monday morning for the first time in almost four years. At 11:19 am, the Dow had lost 399 points, or 3.87% to 9,925.95.

The S&P 500 index had lost 48 points, or 4.4% to 1,049.43, and the Nasdaq index had lost 96 points, or 4.95% to 1,851.

By late morning, equities in Toronto appeared to be turning around and making up for some of the morning’s losses.

IE