Equities in Canada’s main market were severely battered on Monday, swept along by the global market rout that saw a nearly 9% plunge in Chinese stocks and sent commodity prices plunging.
The S&P/TSX composite index recovered from heavy losses, but was still on the downside 197.18 points, or 1.5%, to greet noon at 13,276.49, after opening losses of 5%, its biggest decline since the financial crisis in 2009.
The index posted 123 new 52-week lows.
The Canadian dollar fell 0.16 cents at 75.67 cents U.S.
Four of the top five weightiest losers were made up of Canada's four biggest banks. Royal Bank of Canada, Canada's largest bank, fell 3% to $70.65.
Energy stocks continued their downward spiral, at one point plummeting to the lowest level since December 2003.
Suncor Energy Inc stumbled 2.9% to $33.30.
Oil prices tumbled more than 6% on Chinese worries, with U.S. crude hitting as low as $37.75 U.S. a barrel. It was down about 4.8% at $38.52 U.S. late morning.
Chinese stocks tanked on Monday when Beijing failed to intervene over the weekend as some had hoped, triggering panic selling around the globe. The CBOE Volatility Index, a key measure of U.S. equity volatility, surged above the 50 mark for the first time since the financial crisis in 2009.
ON BAYSTREET
The TSX Venture Exchange plunged 21.31 points, or 4%, to 516.21.
All 14 TSX subgroups were lower by midday, as global base metals slumped 3.8%, metals and mining slouched 3.6%, and energy let go of 2.9%.
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 recovered from major falls at the open, but remained negative 226.47 points, or 1.4%, to break for lunch at 16,233.28, with DuPont the greatest laggard and Apple and Intel the only advancers.
The S&P 500 dropped 32.84 points, or 1.7%, to 1,938.05, with energy leading all 10 sectors lower.
The NASDAQ index remained in the red 53.37 points, or 1.1%, to 4,652.67
The major averages came sharply off lows in midday trade. Apple reversed losses to jump more than 2%.
The Dow Jones industrial average traded about 200 points lower after falling as much as 1,089 points in the open. The index traveled more than 3,000 points in down and up moves during the first 90 minutes of trade.
Prices for 10-year U.S. Treasuries were still positive, lowering yields to 2.03% from Friday’s 2.05%. Treasury prices and yields move in opposite directions.
Oil prices lost $1.72 a barrel to $38.73 U.S.
Gold prices lurched lower $1.90 to $1,157.70 U.S. an ounce.
