Virus Concerns Hit Shares, Primarily Energy Shares

BoC Stays Put

Canada's main stock index fell on Wednesday, weighed by energy stocks as a surge in U.S. crude stockpile and rising coronavirus cases in the United States and Europe raised fears of a supply glut and weaker fuel demand.

The TSX plunged 288.71 points, or 1.8%, to greet noon Wednesday at 15,732.23.

The Canadian dollar docked 0.7 cents at 75.12 cents U.S.

Fortuna Silver Mines fell 78 cents, or 8.2%, the most on the TSX, to $8.72, while Teranga Gold slumped 89 cents, or 5.9%, to $14.20.

The largest percentage gainer on the TSX was Firstservice, which jumped $1.89, or 1.1%, to $170.51, on favourable third-quarter results.

Celestica, however, shed 83 cents, or 9.4%, to $7.96, despite also doing well in Q3.

On the economic front, the Bank of Canada held its overnight lending rate Wednesday at 0.25%. The central bank added it sees inflation below a 2% target through 2022.

ON BAYSTREET

The TSX Venture Exchange dipped 28.77 points, or 4.1%, to stop for lunch at 679.33.

All 12 TSX subgroups were down midday, with gold dulling in price 4.1%, materials down 3.9%, and information technology, 2.7% on the minus side.

ON WALLSTREET

U.S. stocks fell sharply on Wednesday, following their European counterparts, as investors worried that the latest increase in coronavirus infections could halt the global economic recovery.

The Dow Jones Industrials floundered 672.31 points, or 2.5%, to 26,790.88, though off its lows of the morning.

The S&P 500 doffed 84.59 points, or 2.5%, to 3,306.09,

The NASDAQ erased 324.53 points, or 2.8%, to 11,107.38.

U.S. coronavirus cases have risen by a record daily average of 71,832 over the past week, data compiled by Johns Hopkins University showed. Meanwhile, coronavirus-related hospitalizations are up 5% or more in 36 states, according to data from the Covid Tracking Project.

Stocks that would be hurt most by lockdowns or a slowdown in the economy reopening were hit. Shares of Delta Air Lines fell 6.2%. Royal Caribbean shares lost 5.8%. Shares of Facebook, Alphabet and Twitter were also down sharply as their respective CEOs testified in front of Senate members. Facebook lost 4%, and Twitter was off 3.7%, and Alphabet slid nearly 5%.

Prices for the 10-Year Treasury gained slightly, lowering yields to 0.77% from Tuesday’s 0.78%. Treasury prices and yields move in opposite directions.

Oil prices shed $1.99 at $37.58 U.S. a barrel.

Gold prices dipped $29.10 to $1,882.80