Futures for stock in Canada’s largest centre dipped on Monday as U.S. crude prices fell after emergency rate cuts by the U.S. Federal Reserve and its global counterparts failed to reassure markets.
The TSX Composite Index jumped 1,207.88 points, or 9.7%, to finish Friday and a turbulent week at 13,716.33. The decline on the week was a staggering 2,460 points, or 15.2%.
The Canadian dollar tailed off 0.53 cents higher early Monday to 71.96 cents U.S.
March futures declined 5% early Monday.
Canada's financial regulator is reducing the amount of capital lenders must hold to guard against risks to the lowest level on record, it said on Friday, as part of a series of measures to help gird against the economic impact of the COVID-19 pandemic.
Parliament rushed through ratification of the new U.S.-Mexico-Canada trade pact on Friday before taking a three-week break to help stop the spread of the coronavirus.
Ontario, which has reported more than 100 new coronavirus cases, said on Saturday it would limit testing for the respiratory illness until it can guarantee a more steady supply of swabs.
RBC cut the rating Baytex Energy to sector perform from outperform.
RBC cut the rating on Birchcliff Energy to sector perform from outperform.
National Bank of Canada raised the rating on Kirkland Lake Gold to outperform from sector perform.
On the economic calendar, the Canadian Real Estate Association was set to report sales figures for February Monday.
ON BAYSTREET
The TSX Venture Exchange dropped 1.54 points Friday to 391.12, to add to a weekly loss of 115 points, or 22.8%.
ON WALLSTREET
Stock futures were down sharply on Monday even after the Federal Reserve embarked on a massive monetary stimulus campaign to curb slower economic growth amid the coronavirus outbreak.
Futures for the Dow Jones Industrials plummeted 1,041 points, or 4.6%, early Monday to 21,798, triggering the limit down level.
Futures for the S&P 500 plunged 128.5 points, or 4.8%, at 2,555.50.
Futures for the NASDAQ Composite slumped 359.75 points, on 4.6%, to 7,541.
Stock market futures hit “limit down” levels of 5% lower, a move made by the CME futures exchange to reduce panic in markets. No prices can trade below that threshold, only at higher prices than that down 5% limit.
Apple shares plunged by more than 11% in the pre-market. Airline stocks also fell broadly. Delta and United traded at least 15% lower while American lost about 20% before the bell.
Bank stocks took a hit, with Bank of America and JPMorgan Chase dropping 16.6% and 15.8%, respectively. Goldman Sachs and Morgan Stanley each traded at least 14% lower while Citigroup fell 16.8%. The big banks announced Sunday they were halting their buyback programs in an effort to provide capital where needed.
In terms of data, there will be New York Empire State manufacturing numbers at 8:30 a.m. ET.
There are no corporate earnings to note Monday. In other corporate news, Apple said over the weekend that it would close all its retail stores outside of Greater China until March 27. The tech giant has 510 stores around the world, 271 of which are in the U.S.
The weekend’s news regarding the outbreak was not helping sentiment. U.S. cases have jumped to 3,774 and 69 deaths, according to Johns Hopkins University. The U.S. Centers for Disease Control and Prevention urged organizers to cancel or postpone events with at least 50 people.
Overseas, in Japan, the Nikkei 225 let loose 2.5 % Monday, while in Hong Kong, the Hang Seng Index jettisoned 4%.
Oil prices fell $2.23 to $29.50 U.S. a barrel.
Gold prices dropped $39.70 to $1,477 U.S. an ounce.
Futures Fall, even as Fed Drops Rates
