Canada's main stock index futures plunged on Monday as the launch of a price war between Saudi Arabia and Russia sent oil prices crashing, heightening fears the world was sliding into recession amid the coronavirus outbreak.
The TSX Composite Index dumped 378.97 points, or 2.3%, to close Friday and the week at 16,175.02. The index lost 88 points on the week, or 0.54%.
The Canadian dollar fell 0.18 cents early Monday to 74.50 cents U.S.
March futures down 5% early Monday.
Scotiabank cut the target price on Parkland Fuel to $50.00 from $53.00
RBC cut the price target on Recipe Unlimited to $19.00 from $26.00
National Bank of Canada cut the target on Sun Life Financial to $60.00 from $66.00
Saudi Arabia, the world's top oil exporter, plans to raise its crude oil production significantly above 10 million barrels per day (bpd) in April, after the collapse of the Organization of the Petroleum Exporting Countries supply cut agreement with Russia.
On the economic slate, Canada Mortgage and Housing Corporation reported the trend in housing starts was 208,525 units in February compared to 211,153 units in January.
Meanwhile, Statistics Canada reported the total value of building permits issued by Canadian municipalities increased 4.0% to $9.2 billion in January.
Increases were reported in six provinces, led by British Columbia (+52.1% to $2.2 billion).
ON BAYSTREET
The TSX Venture Exchange slipped 14.73 points, or 2.8%, Friday to 506.54, for a gain on the week of eight points, or 1.8%.
ON WALLSTREET
Stock futures tumbled Monday morning as investors braced for the economic fallout from the spreading coronavirus, while a shocking all-out oil price war added to the anxiety.
Futures for the Dow Jones Industrials plunged 1,255 points, or 4.9%, early Monday to 24,534.
Futures for the S&P 500 slipped 145 points, or 4.9%, at 2,819.
Futures for the NASDAQ Composite doffed 410 points, on 4.8%, to 8,093.25.
The massive selloff could trigger key market circuit breakers during regular trading hours. If the S&P 500 drops 7%, trading will pause for 15 minutes.
Investors continued to seek safer assets amid additional fears that the coronavirus will disrupt global supply chains and tip the economy into a recession.
Saudi Arabia on Saturday slashed official crude selling prices for April, in a sudden U-turn from previous attempts to support the oil market as the coronavirus hammers global demand. The move came after OPEC talks collapsed Friday, prompting some strategists to see oil prices crater to $20 this year.
Bank stocks are getting smashed as lower yields put pressure on their margins, while an oil crash could cause energy companies to default on their obligations. JPMorgan plunged 9.3% in pre-market trading.
Investors have already been on edge about the coronavirus outbreak that caused major stock averages to tumble into correction territory.
As of Sunday, global cases of the infection have climbed to more than 109,000 with at least 3,801 deaths around the world. The situation is also worsening in the U.S. with New York, California and Oregon all declaring a state of emergency.
Overseas, in Japan, the Nikkei 225 sank 5.1% Monday, while in Hong Kong, the Hang Seng Index capsized 4.2%.
Oil prices plummeted $9.20 to $32.08 U.S. a barrel.
Gold prices jumped $5.80 to $1,687.50 U.S. an ounce.
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