Canada's main stock index fell on Wednesday, as investors were skeptical over U.S. measures to combat the economic impact of coronavirus, while oil stocks took a beating as crude prices remained weak.
The TSX Composite Index tumbled 491.5 points, or 3.3%, to 14,466.59
The Canadian dollar was up 0.03 at 72.85 cents U.S.
The largest percentage gainers on the TSX were Wesdome Gold, which jumped 29 cents, or 3.2%, to $9.40, and Centerra Gold, which rose 12 cents, or 1.4%, to $8.96. Both stocks tracked the recent rise in gold prices.
Baytex Energy fell six cents, or 9.4%, the most on the TSX, to 58 cents, while the second-biggest decliner was First Quantum Minerals, down 70 cents, or 8.8%, to $7.28
ON BAYSTREET
The TSX Venture Exchange fell 12.68 points, or 2.7%, to 452.06.
All 12 TSX subgroups were negative, with energy falling 7.6%, consumer discretionary stocks ditched 3.6%, financials were down 3.2%.
ON WALLSTREET
Stocks plummeted Wednesday in another volatile session as Wall Street worried about talks over a fiscal stimulus package aimed at curbing slower economic growth due to the coronavirus outbreak.
The Dow Jones Industrials fell hard, losing 927.60 points, or 3.7%, to 24,090.56
The broader S&P 500 backed down 94.3 points, or 3.9%, to 2,789.60
The NASDAQ dumped 253.31 points to 8,090.94.
Those losses put the three averages closer to entering bear-market territory. The Dow was 19% below its all-time high set last month while the S&P 500 was 18.3% under its record. The NASDAQ traded 18.2% off an all-time high set on Feb. 19.
President Donald Trump suggested Tuesday a 0% payroll tax rate that could last until the end of the year. However, the timing of such policies being implemented remains uncertain.
Trump’s comment came as the number of coronavirus cases around the world total more than 100,000, according to data from Johns Hopkins University. In the U.S. alone, more than 1,000 cases have been confirmed. This increase in cases added to fears of a global economic slowdown and have increased calls for government intervention.
Prices for the 10-Year U.S. Treasury galloped, lowering yields to 0.05% from Tuesday’s 0.63%. Treasury prices and yields move in opposite directions.
Oil prices fell $1.15 to $33.21 U.S. a barrel.
Gold prices skidded $10.50 to $1,649.80 U.S. an ounce.
Selloff Accelerates as Dow Losses Approach 1,000
