TSX Tumbles to Worst Day in 12 Years

Canada's main stock index was set for its worst day since 2008 on Monday as the heavyweight energy sector was pummeled by a crash in oil prices while fears of a recession from the coronavirus impact triggered a larger selloff.

The TSX Composite Index came off its lows of the morning, but remained behind Friday’s close by 1,049.77 points, or 6.5%, to pause for lunch Monday at 15,125.25

The Canadian dollar gained 0.49 cents to 73.89 cents U.S.

There were few gainers on the TSX. Cenovus Energy led declines with a drop of $3.69, or 46.7%, to $4.21, while the second biggest decliner was Vermilion Energy, down $3.41, or 32.9%, to $6.95.

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 38.38 points, or 7.6%, to 468.16.

All 12 TSX subgroups retreated with energy falling 20%, industrials retreating 6.8%, and health-care losing 5.7%.

ON WALLSTREET

Stocks cratered Monday as investors grappled with the sinking price of oil and the spread of the coronavirus.

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The Dow Jones Industrials remained lower by 1,323.83 points, or 5.1%, to move into noon hour EDT at 24,540.95, on pace for its worst day since Dec. 2008.

The broader S&P 500 dived 143.34 points, or 4.8%, to 2,828.28. 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 356.27 points, or 4.2%, to 8,220.58.

Bank stocks were 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 U.S. Federal Reserve 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 0.58% from Friday’s 0.78%. Treasury prices and yields move in opposite directions.

Oil prices slid $6.87 to $34.41 U.S. a barrel.

Gold prices faded $8.50 to $1,663.90 U.S. an ounce.

Stocks Endure Worst Open Since Economic Crisis