Canada's main stock index futures fell on Monday as the fast-spreading coronavirus forced countries to lock down, raising fears of a global recession and sending oil prices tumbling.
The TSX Composite Index faltered 318.71 points, or 2.6%, to end Friday and the week at 11,851.81, a weekly demise of 1,864 points, or 13.59%.
The Canadian dollar faded 0.10 cents early Monday to 69.07 cents U.S.
March futures dipped 1.1% early Monday.
Miner Newmont Corp said it was withdrawing its 2020 outlook as some production could be deferred to 2021 due to the ongoing coronavirus outbreak.
The spreading coronavirus outbreak will trigger a short, sharp global recession this year before the world's economy bounces back in 2021, Canada's trade financing agency predicted on Monday.
Ecuador said on Sunday that its largest gold and copper mines would reduce the number of workers and scale back operations to a minimum as the country registers a rapid growth of coronavirus infections.
National Bank of Canada cut the target price on Altagas Ltd. to $17.00 from $26.00
National cut the target price on Capstone Mining to $0.45 from $1.00
National also cut the target price on Enbridge to $56.00 from $62.00
On the economic slate, Statistics Canada reported that wholesale trade increased for a second consecutive month, up 1.8% to $65.2 billion in January.
ON BAYSTREET
The TSX Venture Exchange eked up 2.87 points to 356.54 Friday, for a weekly loss of 34.6 points, or 8.84% on the week.
ON WALLSTREET
U.S. stock futures stayed mostly in the minus column on Monday, erasing steep overnight losses after the Federal Reserve unveiled new measures to keep markets working properly.
Wall Street awaited Washington lawmakers to agree to an economic stimulus and rescue plan to cushion the blow from the coronavirus outbreak.
Futures for Dow Jones Industrials dwindled 229 points, or 1.2%, early Monday to 18,811.
Futures for the S&P 500 shed 20 points, or 0.9%, at 2,268.50.
Futures for the NASDAQ Composite gained 9.75 points, on 0.1%, to 6,978.75.
Most coronavirus-impacted stocks fell again on Monday in pre-market trading as cruise line Carnival Corp. dropped 9.5% and hotel operator Hilton Worldwide dropped 5.3%.
Boeing shares rose 1% in pre-market trading, outperforming the market, as Goldman Sachs made a bold call Sunday evening, telling clients the company had enough cash to survive the coronavirus downturn and that air travel would eventually return. The shares are off 70% this year.
One of the measures taken by the Fed were an an open-ended asset purchase program, which the central bank will run in the “amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy.”
Overnight, futures hit their “limit down” levels, falling 5%. Downside limits to futures contracts are implemented to ensure orderly market behavior once trading hits a certain threshold. No trades below that level are allowed.
A fiscal stimulus bill failed a key procedural Senate vote Sunday as Democrats warned the measure did not do enough to help impacted workers and instead offered too much for company bailouts. House Speaker Nancy Pelosi had signaled she was not on board with the Republican version of the stimulus plan, saying: “From my standpoint, we’re apart.”
On a positive note, Senate Minority Leader Chuck Schumer, D-NY, said disagreements over the bill could be overcome in the next 24 hours. A spokesman for Schumer later added the senator and Treasury Secretary Steven Mnuchin had a “productive meeting.”
National Economic Council Director Larry Kudlow said Saturday an economic stimulus package will total more than $2 trillion, noting it will be equal to roughly 10% of U.S. economic output. Last week, President Donald Trump signed a $100 billion bill that expanded paid leave in the U.S.
Overseas, in Japan, the Nikkei 225 returned from a long weekend to gain 2%, while Hong Kong, the Hang Seng Index dumped 4.9%.
Oil prices took on 62 cents to $23.25 U.S. a barrel.
Gold prices hiked $36.60 to $1,521.20 U.S. an ounce.
