Canada's main stock index plunged more than 5% minutes after the open on Monday, tracking a global rout following a nearly 9% dive in Chinese stocks that also sent commodity prices plunging.
The S&P/TSX composite index declined 677.82 points, or 5%, to begin the session at 12,795.85, its biggest decline since the financial crisis in 2009.
The Canadian dollar fell 0.51 cents at 75.32 cents U.S.
Canaccord Genuity cut the rating on Eldorado Gold to hold from buy, saying its flagship asset, Kisladag, was forecast to struggle from declining grades and recoveries.
Eldorado shares dropped 24 cents, or 5.4%, to $4.24.
BMO raised the rating on Transalta to outperform from market perform, harbouring the opinion that a downturn in Alberta power prices combined with disappointment in management performance and concerns over accelerated coal retirements have pressured the stock.
Transalta jumped in price 29 cents, or 4.5%, to $6.71.
ON BAYSTREET
The TSX Venture Exchange plunged 23.94 points, or 4.5%, to 513.58.
All 14 TSX subgroups were lower in the first hour of trading, as information technology dove 6.7%, metals and mining was off 6.2%, and global base metals tumbled 5.6%.
ON WALLSTREET
U.S. stocks plummeted on Monday, following a renewed rout in global markets, under severe pressure from continued fears of slowing growth in China spilling over internationally.
The Dow Jones industrial average took a header of 611.55 points, or 3.7%, to begin the day and week at 15,848.20
The S&P 500 dropped 72.51 points, or 3.7%, to 1,898.38
The NASDAQ index tumbled 192.44 points, or 4.1%, to 4,513.60
Stock index futures for several major indices fell several percentage points before the open to hit limit down levels.
Circuit breakers for the S&P 500 will halt trade when the index decreases by the following three levels: 7%, 13%, and 20%, from its previous close.
Momentum names like Tesla (down 8.4%) are falling hard in pre-market trading.
European stocks plunged more than 4%, while the Shanghai Composite dropped 8.5%, its greatest one-day drop since 2007.
Prices for 10-year U.S. Treasuries gained sharply, lowering yields to 1.98% from Friday’s 2.05%. Treasury prices and yields move in opposite directions.
Oil prices lost $2.20 a barrel to $38.25 U.S.
Gold prices gained $6.30 to $1,165.90 U.S. an ounce.
