The S&P/TSX Composite Index was down over 160 points at the bottom of the noon hour on April 2. Major indexes in the United States also suffered major declines as bleeding in global stocks has failed to dissipate into the spring months. Canadian banks were hit particularly hard on Monday.
Royal Bank of Canada (TSX:RY)(NYSE:RY) was down 0.96% in early afternoon trading. Royal Bank CEO David McKay recently warned that foreign investment had been spilling out of Canada since tax reform was passed in the United States. Its stock has now dropped over 3% in 2018 thus far.
Toronto-Dominion Bank (TSX:TD)(NYSE:TD) stock had dropped 0.81% close to the end of the noon hour on April 2. TD Bank CEO Bharat Masrani has said that a resolution to NAFTA in the near future is crucial. The next round of negotiations are set to begin in Washington, D.C. early next week. Officials from all sides have said that good progress has been made in 2018 thus far. A deal may be in reach.
Shares of Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) were down 2.32% in early afternoon trading on April 2. This pushed the stock into the red for 2018. Scotiabank leadership recently called warnings from the International Monetary Fund over high Canadian debt into question. CEO Brian Porter said that he was comfortable with the risk profile at Scotiabank going forward.
The S&P/TSX Index has fallen over 6% in 2018 and we have just entered April. Investors should watch financials closely as NAFTA negotiations enter a crucial phase and the Bank of Canada convenes later in the month for a rate decision.
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