Canada's main stock index yo-yoed Thursday morning, only to fall into negative territory by midday, as tech and telecom stocks suffered twin bruisings.
The TSX Composite Index fell 53.97 points from Wednesday’s all-time high to pause for lunch at 17,871.39. Before Thursday’s open, the index had gained in nine of the last 11 sessions.
The Canadian dollar skidded 0.23 cents to 75.39 cents U.S.
Dozens of people in South Korea were infected by the coronavirus in what the authorities described as a "super-spreading event" at a church. The country, which has reported one coronavirus death, now has 104 confirmed cases of the flu-like virus.
The largest percentage gainer on the TSX was Northview Apartment REIT, which jumped $4.04, or 12.4%, to $36.54, after getting a $4.8-billion offer from real estate firms Starlight Group Property Holdings and KingSett Capital Inc.
Sienna Senior Living fell $1.29, or 6.6%, the most on the TSX, to $18.32, after reporting fourth quarter results. The second biggest decliner was Ballard Power, down $1.60, or 8.6%, to $17.06.
On the economic beat, Statistics Canada said Thursday, 448,000 people received regular Employment Insurance benefits in December, little changed from November.
The agency’s new housing price index was unchanged in January, following a 0.2% rise in December.
ON BAYSTREET
The TSX Venture Exchange slipped 0.41 points to 581.28.
The 12 TSX subgroups were split down the middle, with gold and energy stocks each gaining 0.4%, and consumer discretionary stocks eking 0.1%.
The half-dozen laggards were weighed most by information technology, down 2.1%, communications, off 1.1%, and industrials, sliding 0.8%.
ON WALLSTREET
Stocks fell on Thursday with most of the losses coming in a sudden, rapid move midday.
Traders did not have an immediate reason for the decline other than possible technical factors and an increased risk-off sentiment stemming from fears of the coronavirus slowing the global economy
The Dow Jones Industrials thundered lower 294.56 points, or 1%, to reach noon hour Thursday at 29,053.47.
The S&P 500 slumped 33.84 points, or 1%, to 3,352.31.
The tech-heavy NASDAQ dwindled 137.90 points, or 1.4%, to 9,679.28.
Some traders pointed to a report from the Chinese state-run Global Times, which said there had been a sharp increase in coronavirus cases. While the timing of the story did not match with Thursday’s move lower, it does tap into the market’s fears about the coronavirus weighing on the global economy.
Goldman Sachs slid 1.8%, hitting its lows of the day. Intel was the worst-performing stock in the Dow, falling 3%. Apple shares turned negative to trade 1.3% lower.
Fed Vice Chairman Richard Clarida told the media he prefers to look at economists’ forecasts over futures markets on Fed rates. Clarida noted the majority of economists do not expect a rate cut soon from the Fed.
China’s National Health Commission on Wednesday reported that 74,576 cases of the new coronavirus have now been confirmed, with 2,118 deaths on the mainland. Coronavirus cases are also spiking in South Korea. The country said confirmed cases have jumped to 82, more than double the previous number of cases.
S&P Global Ratings warned in a report on Thursday that Chinese lenders could be hit by as much as $1.1 trillion in questionable loans as the coronavirus ripples through China’s economy, while Goldman Sachs has said that markets are underestimating the potential fallout from the outbreak, suggesting the "risks of a correction are high."
To be sure, China’s central bank cut its one-year loan prime rate by 10 basis points overnight in an effort to mitigate the economic fallout from the coronavirus. A summary of the Fed’s January meeting also showed the U.S. central bank is monitoring the spread for any impact on the U.S. economy.
On the data front, weekly jobless claims were in line with expectations at 210,000. The Philadelphia Fed business index surged to 36.7 in February from 17 in January.
Prices for the 10-Year U.S. Treasury gained sharply, lowering yields to 1.51% Wednesday’s 1.57%. Treasury prices and yields move in opposite directions.
Oil prices picked up 43 cents to $53.72 U.S. a barrel.
Gold prices hiked $11.70 to $1,623.50 U.S. an ounce.
Markets Plummet from Record Highs
