Stocks Slump by Noon

WestJet, Lundin in Focus

Canada's main stock index fell for the third straight day on Monday, as an escalating trade row between the United States and China had investors worrying about the damage it could cause to global economic growth.

The S&P/TSX Composite Index plummeted 167.92 points, or 1%, to greet noon at 16,129.63

The Canadian dollar inched back 0.01 cents to 74.22 cents

The largest percentage gainers on the TSX were shares of WestJet Airlines, which jumped 61.9% after the company said it will be acquired by private equity firm Onex Corp in an all-cash deal for $3.53 billion.

Lundin Mining Corp fell 5.9%, the most on the TSX, followed by Sierra Wireless Inc, which fell 5.4%.

ON BAYSTREET

The TSX Venture Exchange removed four points to 595.48

All but one of the 12 Toronto subgroups were lower midday, as health-care backpedaled 4.2%, consumer discretionary stocks chucked 2.7%, and energy sputtered 2.4%

The lone positive subgroup was gold, up 1.9%.

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 613.34 points, or 2.4%, to 25,329.03,

The S&P 500 dropped 69.93 points, or 2.4%, to 2,811.47, mostly due to a 3.4% drop in the tech sector.

The NASDAQ Composite slumped 257.87 points, or 3.3%, to 7,659.07.

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 5% while Apple dropped 5.2%. Boeing shares also declined more than 3% 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 2.40% from Friday’s 2.47%. Treasury prices and yields move in opposite directions.

Oil prices moved downward 46 cents to $61.20 U.S. a barrel.

Gold prices added $11.40 to $1,298.30 U.S. an ounce.