Global indicators were mostly positive for North American stock markets early Thursday.

Toronto stocks plunged 294 points Wednesday, as the country’s senior market reacted to the unexpected announcement that the federal government intends to begin taxing income trusts.

The Canadian dollar opened at US88.32¢, up 0.1 of a cent.

Oil prices dropped Thursday as the market focused on a climb in U.S. crude oil stocks rather than a larger-than-expected drop in product inventories. Light sweet crude for December delivery fell 41 cents to US$58.30 a barrel in electronic trading on the New York Mercantile Exchange by midday in Europe.

In earnings news, Barrick Gold Corp. said its third-quarter profit soared to US$405 million from a year-earlier US$113 million as cash flow reached a record high.

Algoma Steel Inc.’s third-quarter profit rose to $59.5 million from $30.8 million in the same period a year ago.

European indexes were mixed in early action.

In Asia, Hong Kong’s Hang Seng ndex surged 261.13 points, or 1.4%, to close at a record 18,714.78.

Tokyo’s benchmark Nikkei 225 index fell 25.24 points, or 0.15%, to finish at 16,350.02 points

Toronto stocks plunged Wednesday, as the country’s senior market reacted to the unexpected announcement that the federal government intends to begin taxing income trusts.

On Wednesday, the S&P/TSX composite index fell 294.20. or 2.38%, to 12,050.39 as investors ran away from the income trust sector as well as those companies that had expressed an intention to convert to an income trust.

Nine of the 10 TSX main sub-groups were lower on the session, with just financials, up 0.17%, escaping the downward trend.

The TSX benchmark index also set a new record for number of trades, 614,188, compared to the previous record of 477,674 set in June. Volume on the day was just under 481 million shares.

The telecommunications sector fell 8.28%. Shares in BCE Inc., which had previously announced an intention to convert, but is now reconsidering, fell $3.60, or 11.36%, to $28.10.

Telus Corp., another income trust conversion hopeful, lost $8.78, or 13.52%, to $56.15. Meanwhile, Rogers Communications Inc., which had decided against the income trust route, gained 91¢, or 1.35%, to $68.10.

The energy sector, which includes a number of income-trust companies, fell 5.10%.

Pengrowth Energy Trust lost $2.63, or 12.01%, to $19.27.

CI Financial, which converted to an income trust earlier this year, plunged 18%.

The S&P TSX Venture Exchange gained 8.61, or 0.33%, to 2,585.25.

In New York, markets dropped on disappointing corporate earnings and economic news.

The Dow Jones industrial average lost 49.71 points to 12,031.02, the Nasdaq composite index sank 32.36 points to 2,334.35 while the S&P 500 moved lower by 10.13 points to 1,367.81.