Equities in Canada’s largest market fell on Monday, as fears of fresh COVID-19 curbs in China dented oil prices, while technology shares fell amid growing fears of a potential economic slowdown due to looming interest rate hikes.
The S&P/TSX stumbled 185.96 points, or 1%, to move into noon hour Monday at 18,836.90.
The Canadian dollar stepped back 0.2 cents to 77.03 cents U.S.
Among individual companies, Yamana Gold took on two cents to $6.21 after South Africa's Gold Fields promised higher dividends and a TSX listing to sweeten its proposed takeover.
Rogers Communications fell $2.54, or 4.1%, to $59.00 after Friday's massive outage highlighted the perils of Canada's effective telecom monopoly and sparked a backlash against its industry dominance.
ON BAYSTREET
The TSX Venture Exchange docked 7.4 points to 607.98.
All but one of the 12 TSX subgroups were still in the minus category, with information technology sliding 3.2%, health-care down 3%, and energy failing 2%.
The sole gainers was gold, up 0.1%.
ON WALLSTREET
U.S. equities fell Monday as Wall Street braced for big company earnings reports slated for later in the week which could signal how inflation is impacting businesses.
The Dow Jones Industrials lost 147.38 points to 31,190.77.
The S&P 500 lost 43.89 points, or 1.1%, to 3,855.49.
The NASDAQ Composite stumbled 237.20 points, or 2%, to 11,398.11.
Monday’s moves lower come as investors remain focused on June inflation data and the start of corporate earnings season for clues into the health of corporate America. The findings could signal how inflation and surging prices are hitting profits.
The season kicks off with reports from PepsiCo and Delta Air Lines scheduled for Tuesday and Wednesday, while banks JPMorgan Chase, Morgan Stanley, Wells Fargo and Citigroup will post earnings later in the week.
Information technology and communication services slipped about 2%, led by beaten-up tech shares. Alphabet, Tesla and Netflix shed about 3% each. Boeing, Intel and Walt Disney fell more than 2%, dragging down the Dow.
Twitter shares fell 6% after Elon Musk terminated a deal worth $44 billion to buy the social media company.
The billionaire took issue with the number of bots and fake accounts on the platform and said Twitter wasn’t being truthful about how authentic activity on the platform was. However, the company said it gave Musk the information he needed to assess the claims.
Treasury prices gained, lowering yields to 2.98% from Friday’s 3.04%. Treasury prices and yields move in opposite directions.
Oil prices fell $1.01 to $103.78 U.S. a barrel.
Gold prices doffed $6.10 to $1,736.20 U.S. an ounce.
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