Stocks on Canada’s largest index fell in early trade on Monday, with the energy sector falling the most, as broader risk appetite was rattled by fears of a resurgence in COVID-19 cases.
The S&P/TSX Composite Index slumped 260.37 points or 1.7%, to begin the week at 14,996.20.
The Canadian dollar eked up 0.01 cents at 73.40 cents U.S.
Britain's Cineworld Group said on Friday it abandoned its $1.65-billion deal to buy Cineplex, citing what it termed the Canadian company's breaches in the merger agreement between the cinema operators.
Cineplex shares slipped $2.87, or 20.8%, to $10.95.
First Majestic Silver’s CEO said Friday the company has asked Canada's ambassador to Mexico to intervene in an escalating tax dispute with President Andres Manuel Lopez Obrador's government. First Majestic shares dipped 40 cents, or 4.6%, to $8.39.
Canaccord Genuity raised the price target on Docebo to $32.00 from $28.00. Docebo shares lost eight cents to $27.16.
RBC raised the rating on Major Drilling Group International to outperform from sector perform. Major shares gave up a penny to $3.42.
CIBC raises rating on TFI International to neutral from underperform. TFI shares slid 65 cents, or 4.8%, to $43.53.
On the economic beat, Statistics Canada said manufacturing sales fell by a record 28.5% to $36.4 billion in April, following a 9.8% decline in March.
The Canadian Real Estate Association was to report MLS Home sales for May.
ON BAYSTREET
The TSX Venture Exchange lost 8.92 points, or 1.6%, to 545.99.
All but one of the 12 TSX subgroups sank first thing Monday, gold dulled in price 3%, materials skidded 2.9%, and consumer discretionary surrendered 2.3%.
Only information technology held out, gaining 0.3%.
ON WALLSTREET
Stocks dropped on Monday as investors grapple with signs of a second wave of coronavirus cases as the U.S. economy reopens.
The Dow Jones Industrials went down 397.84 points, or 1.6%, to 25,207.68.
The S&P 500 plummeted 33.30 points, or 1.1%, to 3,007.93.
The NASDAQ subtracted 40.99 points to 9,547.82.
Stocks which stand to benefit the most from a successful reopening led the losses. Carnival and Royal Caribbean cruise lines each lost more than 7%.
United Airlines lost 7.9% and American Airlines slid 7.6%. Retailers Kohl’s and Gap declined. These types of stocks surged in May as investors bet that the worst of the virus was over.
States in the reopening process including Alabama, California, Florida and North Carolina are reporting a rise in daily new coronavirus cases. Texas and North Carolina reported a record number of virus-related hospitalizations Saturday.
Meanwhile, Governor Andrew Cuomo warned New Yorkers against triggering a second wave of the coronavirus. He said on Sunday the state has received 25,000 complaints about businesses violating rules of the phased reopening, threatening to take liquor licenses from bars and restaurants.
Prices for the 10-Year Treasury gained ground, lowering yields to 0.68% from Friday’s 0.69%. Treasury prices and yields move in opposite directions.
Oil prices slumped $1.33 to $34.93 U.S. a barrel.
Gold prices ducked $24.50 to $1,712.80 U.S. an ounce.
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