Significantly Down Foreseen for TSX

Wheaton in Focus

Futures for Canada's main stock index fell on Monday as an increase in COVID-19 cases raised fears of a second round of lockdowns, while oil prices fell on the possible return of Libyan oil production.

The TSX toppled 49.94 points, to close Friday and the week at 16,197.78. On the week, the index fell 24.68 points.

The Canadian dollar shed 0.22 cents early Monday to 75.84 cents U.S.

December futures tumbled 1.5% Monday.

Ontario is cracking down on private social gatherings as COVID-19 cases surge, Premier Doug Ford said in a surprise news conference on
Saturday.

Wheaton Precious Metals said on Sunday it was planning a UK listing by year-end, potentially the largest metals and mining company to join the London Stock Exchange since Glencore in 2011.

Statistics Canada said its new housing price index increased for the fourth consecutive month, rising 0.5% nationally in August, the largest monthly increase for new home prices at the national level since May 2017.

ON BAYSTREET

The TSX Venture Exchange inched up 2.15 points Friday to 745.37, for a gain on the week of 12 points, or 1.64%.

ON WALLSTREET

U.S. stock futures fell sharply early Monday as a number of factors rattled traders amid a three-week losing streak for the market.

Futures for Dow Jones Industrials sank like a stone, 509 points, or 1.8%, early Monday, to 27,093.

Futures for the S&P 500 parted with 49.75 points, or 1.5%, at 3,266.50.

Futures for the NASDAQ Composite faltered 138.5 points, or 1.3%, to 10,788.50.

The U.K. is reportedly considering another national lockdown to stop an increase in coronavirus cases. In the U.S., stocks that would be hit hardest from another lockdown decline in pre-market trading. Share of Carnival Corp. were off by 5%. Southwest Airlines and Delta Air Lines both fell 4%.

Negotiations for a second stimulus bill could become more complicated after the passing Friday of Supreme Court Justice Ruth Bader Ginsburg, which could lead to a bitter nomination process ahead of the election. Trump said he would nominate someone this week to take Ginsburg’s seat. Republicans and Democrats have been in a stalemate since July after provisions from the previous stimulus bill expired.

Technology shares — which led the broader market off its coronavirus lows and into record territory, but have been hit hard so far in September — struggled once again in the pre-market. Apple, Microsoft and Amazon were all off by 2% in pre-market trading.

Shares of Nikola, a one-time high-flying SPAC-turned electric vehicle play, dropped 27% in pre-market trading after the company said founder Trevor Milton is voluntarily stepping down as executive chairman and board member.

Shares of GM, which recently took a 11% stake in Nikola, fell almost 4% in pre-market trading.

Overseas, in Hong Kong, the Hang Seng index slipped 2.1%, while in Tokyo, markets were closed for a holiday.

Oil prices slid 78 cents to $40.33 U.S. a barrel.

Gold prices stumbled $23.80 to $1,938.30.