Canada's main stock index endured its worst day since 2008 on Monday as the heavyweight energy sector was pummeled by a crash in oil prices while fears of a recession from the coronavirus impact triggered a larger selloff.
The TSX Composite Index fell off 1,660.78 points, or 10.3%, to conclude Monday at 14,514.24
The Canadian dollar lost 0.2 cents to 73.19 cents U.S.
Energy stocks got mugged, as mentioned earlier, as MEG Energy stumbled $3.12, or 55.9%, to $2.46, and Cenovus Energy plummeted $4.06, or 51.4%, to $4.21,
Among financials, Canadian Western Bank bled $4.22, or 15.4%, to $23.25, while Bank of Montreal got turfed $10.64, or 12.6%, to $73.73.
Among health-care concerns, Aurora Cannabis ditched 25 cents, or 16%, to $1.31, while HEXO fell 18 cents, or 12.3%, to $1.28.
Saudi Arabia, the world's top oil exporter, plans to raise its crude oil production significantly above 10 million barrels per day in April, after the collapse of the Organization of the Petroleum Exporting Countries supply cut agreement with Russia.
On the economic slate, Canada Mortgage and Housing Corporation reported the trend in housing starts was 208,525 units in February compared to 211,153 units in January.
Meanwhile, Statistics Canada reported the total value of building permits issued by Canadian municipalities increased 4.0% to $9.2 billion in January.
Increases were reported in six provinces, led by British Columbia, up 52.1% to $2.2 billion.
ON BAYSTREET
The TSX Venture Exchange slumbered 43.39 points, or 8.6%, to 463.15.
All 12 TSX subgroups were roughed up, with energy falling 25.8%, financials poorer by 9.2%, and health-care losing 8.8%.
ON WALLSTREET
The Dow Jones Industrial Average sank more than 1,700 points on Monday, notching its worst day since 2008, as market angst over the spread of the new coronavirus and an oil price war sent investors scrambling for safety.
The 30-stock index sank 1,762.77 points, or 6.8%, to wind up a disastrous session at 24,102.01.
The broader S&P 500 dived 225.81 points, or 7.6%, to 2,746.56. The massive selloff triggered a key market circuit breaker minutes into the opening bell. Trading was halted for 15 minutes until reopening.
The NASDAQ plunged 624.94 points, or 7.3%, to 7,950.68.
Bank stocks were smashed as lower yields put pressure on their margins, while an oil crash could cause energy companies to default on their obligations. JPMorgan, Citigroup and Bank of America all plunged more than 10%.
President Donald Trump blamed the media and the oil price war for the stock rout on Monday, arguing in a series of tweets that lower gasoline prices are "good for the consumer."
Traders expect the U.S. Federal Reserve to slash rates by three-quarters of a percentage point at its upcoming March meeting. Chances for a full percentage point cut this month were at 29.2%
Saudi Arabia on Saturday slashed official crude selling prices for April, in a sudden U-turn from previous attempts to support the oil market as the coronavirus hammers global demand.
The move came after the Organization of the Petroleum Exporting Countries talks collapsed Friday, prompting some strategists to see oil prices crater to $20 this year.
Investors have already been on edge about the coronavirus outbreak that caused major stock averages to tumble into correction territory. As of Monday, global cases of the infection have climbed to more than 111,000 with at least 3,800 deaths around the world.
The situation is also worsening in the U.S. with New York, California and Oregon all declaring states of emergency.
Prices for the 10-Year U.S. Treasury moved sharply higher, lowering yields to 0.60% from Friday’s 0.78%. Treasury prices and yields move in opposite directions.
Oil prices dropped $10.29 to $30.99 U.S. a barrel.
Gold prices regrouped $5.20 to $1,677.60 U.S. an ounce.
