The Toronto stock market plunged almost 400 points Monday afternoon with energy stocks sustaining the most damage while oil prices dipped below $50 U.S. for the first time in five-and-a-half years.
The S&P/TSX composite index faltered 360.95 points, or 1.9%, to close Monday at 14,392.70
The Canadian dollar picked up 0.21 cents to 85.06 cents U.S.
Oil later recovered somewhat to above the $50 mark a barrel mid-afternoon. Imperial Oil doffed $2.18, or 4.3%, to $48.00, while Suncor shed $1.63, or 4.4%, to $35.72
Elsewhere on the TSX, the base metals sector was down while March copper fell six cents to US$2.76 U.S. a pound. Teck Resources dumped 56 cents, or 3.5%, to $15.57.
Financials were down, as Royal Bank fell $1.82, or 2.3%, to $78.88, while industrials shed strength, as Bombardier lost nine cents, or 2.1%, to $4.11.
Gold was one of the few bright spots, though Barrick Gold backtracked five cents to $12.81, while Agnico Eagle Mines moved forward 48 cents, or 1.5%, to $32.20
ON BAYSTREET
The TSX Venture Exchange was negative 12.83 points to 693.99
All but three of the 14 Toronto subgroups were lower, with energy stocks falling 6.5%, metals and mining trailing Friday’s close 4.4%, and global base metals down 3.9%.
The three gainers were gold, up 2.6%, real-estate, up 0.5%, and utilities, inching up 0.01%.
ON WALLSTREET
U.S. stocks fell sharply on Monday, with the S&P 500 extending losses into a fourth session, as energy companies took it on the chin as the price of oil fell to its lowest since April 2009.
The Dow Jones Industrials staggered 331.34 points, or 1.9%, to 17,501.65, with Caterpillar and Chevron leading blue-chip declines that included 28 of its 30 components.
The S&P 500 dropped 37.62 points to 2,020.58. The NASDAQ index fell 74.24 points to 4,652.57.
Exxon Mobil, Chevron and other oil producers fell with the price of crude, which closed just above $50 U.S. a barrel after a short visit below the psychological level during the session.
Equities did not get any relief as U.S. automakers reported strong domestic sales in December, with General Motors surpassing estimates and posting a 19 percent gain for the month.
Prices for 10-year U.S. Treasuries gained ground, lowering yields to 2.04% from Friday’s 2.12%. Treasury prices and yields move in opposite directions.
Oil prices descended $2.83 per barrel to $49.86 U.S.
Gold prices boosted $18.20 an ounce at $1,204.30 U.S.
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