Markets Take Their Lumps to Begin Week

Hardwoods in Focus

Canada's main stock index fell at the open on Monday, as an escalating tariff war between the United States and China raised concerns about global economic growth.

The S&P/TSX Composite Index plummeted 153.52 points to begin the day and a new week at 16,144.03

The Canadian dollar gained 0.22 cents to 74.44 cents

RBC raised the target price on Emera to $59.00 from $56.00. Emera shares started Monday up 11 cents to $50.43.

CIBC raised the target price on GDI Integrated Facility Services to $28.00 from $24.00. GDI shares dipped 35 cents, or 1.3%, to $26.31.

National Bank of Canada cut the target price Hardwoods Distribution to $15.50. Hardwoods shares eked up three cents to $12.51.

ON BAYSTREET

The TSX Venture Exchange removed 2.73 points to 596.75

All but one of the 12 Toronto subgroups were lower in the first hour, as health-care backpedaled 3.2%, consumer discretionary stocks chucked 2.1%, and information technology slipped 1%.

The lone positive subgroup was gold, up 1.3%.

ON WALLSTREET

Stocks fell sharply on Monday, giving back the gains from a strong turnaround in the previous session, after China decided to raise tariffs on some U.S. goods as the ongoing trade war between the world’s largest economies intensifies.

The Dow Jones Industrials plunged 472.36 points, or 1.8%, to 25,470.01,

The S&P 500 dropped 61.58 points, or 2.1%, to 2,818.84, due largely to a 3.3% drop in the tech sector.

The NASDAQ Composite slumped 224.71 points, or 2.8%, to 7,692.12

China will hike tariffs on $60 billion worth of U.S. imports, starting on June 1. The goods targeted include a broad range of agricultural products. This comes after President Donald Trump raised tariffs on Chinese imports last week. China said in a statement that the U.S.' decision jeopardized the interests of both countries and does not meet the “general expectations of the international community,” according to a Google translation.

Trade bellwether Caterpillar fell more than 4.4% while Apple dropped nearly 5%. Boeing shares also declined more than 2.5% amid speculation the airplane maker could be singled out by China in the trade war.

Prices for the benchmark 10-year U.S. Treasury moved sharply higher, lowering yields to 2.41% from Friday’s 2.47%. Treasury prices and yields move in opposite directions.

Oil prices galloped $1.33 to $62.99 U.S. a barrel.

Gold prices added $9.40 to $1,296.80 U.S. an ounce.