North American stock markets slide to another losing day

Stock markets in Toronto and New York ended the trading day with morelossesWednesday asoil prices slipped further and investors examined remarks from the chair of the U.S. Federal Reserve for interest rate clues.

The main index of the Toronto Stock Exchange fell97points, or 0.8 per cent, to close at 12,186.The Dow Jones industrial average slid almost 100points to end the day at 15,915.

Both benchmarks had been up by tripledigitsearlier in the day.

• Janet Yellen sticks with plan to hike rates but that can change, she tells Congress
• Oil closes below $28 US a barrel, dragging TSX down 253 points
• IEA says oil supply will far outstrip demand in 2016

Investors and traders closely watchedcongressional testimony from U.S. Federal Reserve chair Janet Yellen for clues to the outlook for monetary policy.

Yellentold Congressthere isreasonto believe the United States will continueon a path of moderate growth that will allow the Fed topursue "gradual" interest rate hikes.

Yellen said that while there are global threats to the U.S. economy, the Fedstill plans to raise interest ratesgradually. But she acknowledged that the Fed would move slower "if the economy were to disappoint."

Sharp falls in global stocks and weak U.S. economic data have led markets to slash expectations for the pace and extent of Fed interest rate rises. The Fed raised its key lending rate inDecember the first such hike in almost a decade.

• No worries over 'embarrassment' for Fed's Janet Yellen: Don Pittis

Oil prices, which fell eightper cent on Tuesday to their lowest since September 2003, were volatilefollowingthe release on Wednesday of new inventory supply figures. U.S. crude oil inventories fell by 754,000 barrels in the past week, versus expectations of a 3.2-million barrel increase, the Energy Information Administration said.

Benchmark West Texas Intermediate crude dropped49cents to settle at$27.45US a barrelin New York trading a new 13-year low.

The Canadian dollar closeddown more thana quarter of a cent at71.77cents US.