Canada's main stock index opened lower on Monday as investors continued to weigh the effectiveness of stimulus measures in stemming the economic shock of the coronavirus outbreak.
The TSX Composite Index fell at the outset by 45.06 points, to 12,642.68.
The Canadian dollar toppled 0.47 cents at 70.59 cents U.S.
Canada's top lenders lowered their prime rates by 50 basis points on Friday, hours after the central bank unexpectedly cut its key interest rate to help the county weather the economic fallout of the coronavirus pandemic.
Shares in Royal Bank fell $1.31, or 1.6%, to $81.23. Scotiabank shares fell 90 cents, or 1.7%, to $53.39. T-D shares doffed 68 cents, or 1.2%, to $56.09, while National lost 50 cents, or 1%, to $49.94. Shares in CIBC slipped $1.34, or 1.7%, to $76.33.
The Competition Bureau has said Air Canada's proposed $720-million acquisition of tour operator Transat A.T. Inc will result in a substantial lessening or prevention of competition. The Maple Leaf Airline saw its shares drop $1.39, or 8.3%, to $15.36.
Credit Suisse cut the rating on Acadian Timber to neutral from outperform. Acadian hiked 76 cents, or 6%, to $13.48.
RBC cut the price target on Corus Entertainment to $4.00 from $7.00. Corus shares dropped 12 cents, or 4.8%, to $2.37.
CIBC cut the target price on Extendicare to $8.50 from $9.50. Extendicare slid nine cents, or 1.6%, to $5.46.
CIBC cut the target price on Suncor Energy to $40.00 from $45.00. Suncor crept up three cents to $16.46.
ON BAYSTREET
The TSX Venture Exchange eked higher 0.05 points to 388.63.
Eight of the 12 TSX subgroups moved lower, with energy down 4.6%, health-care skidding 4.5%, and real-estate weaker by 4.1%.
The four gainers were led by gold, up 3.5%, materials, up 2%, and information technology, ahead 0.5%.
ON WALLSTREET
Stocks rose on Monday, building on a strong rally from last week as the U.S. extends measures to contain the coronavirus outbreak.
The Dow Jones Industrials eased 8.94 points to 21,627.84.
The broader S&P 500 regained 20.69 points to 2,562.16,
The NASDAQ climbed 94.74 points, or 1.3%, to 7,597.92.
President Donald Trump said at a news conference Sunday the national social distancing guidelines have been extended to April 30, adding the death rate from the virus would peak in two weeks. These measures, while they may cause a sharp economic disruption in the near term, are seen by some investors as preventing long-term damage to the economy.
Sentiment was also lifted after Johnson & Johnson said it identified a lead vaccine candidate for the coronavirus. The company noted that human testing on the potential vaccine will begin in September. J&J shares climbed 3.9%.
Data compiled by Johns Hopkins University shows more than 713,000 coronavirus cases have been confirmed globally. The U.S. overtook Italy and China last week as the country with the most cases with over 136,000. Nearly half of all U.S. cases come from New York, where more than 59,000 people have been infected.
Prices for the 10-Year U.S. Treasury gained sharply, causing yields to go south to 0.62% from Friday’s 0.69%. Treasury prices and yields move in opposite directions.
Oil prices dipped $1.34 to $20.17 U.S. a barrel.
Gold prices ditched $6.90 to $1,647.20 U.S. an ounce.
