TSX Dives to Begin Week

Building Permits Revealed Monday

Canada's main stock index opened lower on Monday, weighed by energy and mining shares, as commodities retreated on worries over global economic growth on lockdowns in China and rising interest rates.

At the open, the S&P/TSX Composite plunged 330.71 points, or 1.6%, to 20,302.57.

The Canadian dollar gave back 0.08 cents at 77.32 cents U.S.

First Quantum Minerals said on Sunday its board has approved plans for a $1.25-billion expansion of the company's Kansanshi copper mine in Zambia, first floated in January 2020, a decision the miner said was prompted by "renewed confidence" in Zambia's investment climate.

First Quantum shares lost $1.10, or 3.3%, to $31.92.

The federal Commissioner of Competition intends to oppose Rogers Communications Inc's proposed $20-billion merger with Shaw Communications.

Rogers weakened $3.67, or 5.5%, to $63.29, while Shaw crumbled $3.43, or 9.1%, to $34.13.

Credit Suisse raised the target price on Canadian Natural Resources to $93.00 from $85.00. Natural Resources lost $2.13, or 2.6%, to $79.91.

Veritas Research raised the rating on Fortis Inc. to buy from reduce. Shares in Fortis increased 46 cents to $63.39.

ATB Capital Markets raised the target price on Kinaxis to $210.00 from $200.00. Kinaxis shares declined $270, or 2%, to $135.59.

In things macroeconomic, building permits were down in March decreased 9.3% to $11.7 billion, mainly due to the non-residential sector (-29.5% to $3.7 billion). Two large hospital permits issued in February pushed that month's total to a record high.

ON BAYSTREET

The TSX Venture Exchange dumped 26.17 points, or 3.4%, to open the week at 743.80

All but one of the 12 TSX subgroups began the week on the downside, with communications waning 3.6%, while energy lost 3.3%, and health-care fell 3.2%.

Consumer staples proved the lone gainer, up 0.2%.

ON WALLSTREET

Stocks fell sharply Monday, pushing the S&P 500 to a fresh 52-week low, as the market selloff continued and traders struggled to find their footing from last week’s big market swings.

The Dow Jones Industrials dropped 367.53 points or 1.1%, to 32,531.84.

The S&P 500 slid 81.07 points to 4,042.27.

The NASDAQ Composite thundered lower 311.46 points, or 2.6%, to 12,144.66.

Rising rates continued to put pressure on technology names such as Meta Platforms and Alphabet, which fell more than 4.3% and 1.7%, respectively. Amazon and Apple were all down more than 1%, while Tesla and Nvidia dipped about 4%.

The combination of high rates and a potential recession as inflation surges also hit other areas of the market. Consumer stocks like Nike suffered along with industrials such as Caterpillar and Deere. Bank stocks also came under pressure with Bank of America falling more than 1%.

Boeing marked the biggest loser in the Dow, falling more than 4% followed by energy bellwether Chevron which slipped 3.7% as U.S. oil futures continued to slide. Home Depot and Walmart remained bright spots in the market, posting gains amid the broader selloff.

On the earnings front, Palantir cratered 21% on weak revenue guidance and BioNTech added 3.7% following a strong quarter. First-quarter earnings season is slowing down, but there are several notable reports including Walt Disney and Occidental Petroleum slated for later in the week.

In other corporate news, Rivian shares plunged nearly 15% after media reports on Saturday that Ford is looking to sell eight million shares in the electric vehicle maker.

Treasury prices were static, with yields staying at Friday’s 3.13%.

Oil prices shed $2.77 to $107.00 U.S. a barrel.

Gold prices fell $18.30 to $1,854.50 U.S. an ounce.