Equities in Toronto capsized on Monday, as oil prices fell and the heavyweight energy and financial groups lost ground, while investors expressed concern over U.S. President Donald Trump's ability to push through his agenda of tax cuts and fiscal spending.
The S&P/TSX Composite Index collapsed 91.13 points to begin the week at 15,351.54
The Canadian dollar shed 0.26 cents at 74.65 cents U.S.
Among energy concerns, MEG Energy cowered 18 cents, or 3%, to $5.91, while EnCana Corporation ducked 36 cents, or 2.6%, to $13.75.
In the financial sector, Manulife took its lumps 52 cents, or 2.2%, to $22.88, while TD dropped 51 cents to $64.67.
Dominion Diamond Corp., which is being pursued by Washington Cos and Stornoway Diamond, said it would explore strategic alternatives, including a sale.
Dominion shares hurtled 78 cents, or 4.6%, to $17.77, and Stornoway shares dipped two cents to 92 cents.
Desjardins raised the target price on BRP Inc. to $35.00 from $33.00. BRP shares 44 cents, or 1.6%, to $27.90.
CIBC cut the price target on Klondex Mines to $7.00 from $7.50. Klondex shares eked up seven cents, or 1.2%, to $5.71.
National Bank Financial cut the target price on K Bro Linen to $37.00 from $45.00. K Bro shares tumbled $3.27, or 7.9%, to $37.89.
ON BAYSTREET
The TSX Venture Exchange added 6.45 points to 810.05
Eight of the 12 TSX subgroups were negative to begin with, what with energy lagging 1.4%, financials docking 0.9%, and information technology doffing 0.8%.
Of the four gainers, gold soared 2.6%, while health-care and materials each picked up 0.9%.
ON WALLSTREET
U.S. stocks began the week on the wrong foot, trading sharply lower on Monday as enthusiasm about President Donald Trump's agenda dwindled.
The Dow Jones Industrials sank 130.37 points to open Monday at 20,466.35, with Goldman Sachs contributing the most losses. The 30-stock index was also on track to post an eight-session losing streak.
The S&P 500 fell 14.61 points to 2,329.47, with financials falling 1.8% to lead decliners
The NASDAQ Composite settled 32.26 points to 5,796.48
The Trump administration was dealt a body-blow Friday after a House bill aimed at replacing Obamacare was pulled from the floor. The GOP bill faced opposition not just from Democrats, but also from conservative and more moderate Republicans, and was not able to secure enough votes to pass.
The House vote was seen as crucial for the Trump agenda. Trump had said the repeal and replacement of Obamacare must happen before action can be taken on his other plans, including a major tax reduction. Stocks have rallied significantly since the U.S. election on hopes of lower taxes, deregulation and fiscal stimulus.
Trump said Friday the administration would move to try and slash taxes.
Prices for the benchmark 10-year Treasury note climbed, lowering yields to 2.36% from Friday’s 2.41%. Treasury prices and yields move in opposite directions.
Oil prices sank 77 cents to $47.20 U.S. a barrel
Gold prices jumped $9.80 at $1,258.30 U.S. an ounce.
