Canada markets closed

Sharp Drop for Stocks

Baystreet.ca

Canada's main stock index fell at the open on Monday as the heavyweight energy sector was pummeled by a crash in oil prices.

The TSX Composite Index took a header, falling 1.441.65 points, or 8.9%, to open Monday at 14,733.37

The Canadian dollar inched higher 0.09 cents to 73.48 cents U.S.

Scotiabank cut the target price on Parkland Fuel to $50.00 from $53.00. Parkland shares dissolved $2.45, or 6.8%, to $33.61.

RBC cut the price target on Recipe Unlimited to $19.00 from $26.00. Recipe shares demurred 69 cents, or 4.5%, to $14.58.

National Bank of Canada cut the target on Sun Life Financial to $60.00 from $66.00. Sun Life shrank in price $5.84, or 10.3%, to $50.64.

Saudi Arabia, the world's top oil exporter, plans to raise its crude oil production significantly above 10 million barrels per day in April, after the collapse of the Organization of the Petroleum Exporting Countries supply cut agreement with Russia.

On the economic slate, Canada Mortgage and Housing Corporation reported the trend in housing starts was 208,525 units in February compared to 211,153 units in January.

Meanwhile, Statistics Canada reported the total value of building permits issued by Canadian municipalities increased 4.0% to $9.2 billion in January.

Increases were reported in six provinces, led by British Columbia, up 52.1% to $2.2 billion.

ON BAYSTREET

The TSX Venture Exchange slumbered 30.25 points, or 6%, to 476.29.

All 12 TSX subgroups were on the negative side, with energy falling without a parachute, 29.1%,, health-care losing 10.1%, and financial stocks falling 8.4%.

ON WALLSTREET

Read:

Stocks tumbled on Monday as investors braced for the economic fallout from the spreading coronavirus, while a shocking all-out oil price war added to the anxiety.

The Dow Jones Industrials stubbed their toes out of the starting blocks, 1,505.01 points, or 5.8%, to begin a new week at 24,359.77, on pace for its worst day since Dec. 2008.

The broader S&P 500 dived 168.81 points, or 5.7%, to 2,803.81. The massive selloff triggered a key market circuit breaker minutes into the opening bell. Trading was halted for 15 minutes until reopening.

The NASDAQ plunged 437.16 points, or 5.1%, to 8,138.46.

Bank stocks are getting smashed as lower yields put pressure on their margins, while an oil crash could cause energy companies to default on their obligations. JPMorgan plunged more than 9%.

Traders expect the central bank to slash rates by three-quarters of a percentage point at its upcoming March meeting. Chances for a full percentage point cut this month were at 29.2%

Saudi Arabia on Saturday slashed official crude selling prices for April, in a sudden U-turn from previous attempts to support the oil market as the coronavirus hammers global demand. The move came after the Organization of the Petroleum Exporting Countries talks collapsed Friday, prompting some strategists to see oil prices crater to $20 this year.

Prices for the 10-Year U.S. Treasury moved sharply higher, lowering yields to 0.53% from Friday’s 0.78%. Treasury prices and yields move in opposite directions.

Oil prices slid $8.17 to $33.11 U.S. a barrel.

Gold prices picked up 80 cents to $1,673.20 U.S. an ounce.