Stock markets in Toronto fell on Monday as an increase in COVID-19 cases raised fears of a second round of lockdowns, while oil prices fell on the possible return of Libyan oil production.
The TSX cratered 252.62 points, or 1.6%, to open the week at 15,946.30
The Canadian dollar fell 0.42 cents to 75.34 cents U.S.
Ontario is cracking down on private social gatherings as COVID-19 cases surge, Premier Doug Ford said in a surprise news conference on
Saturday.
Wheaton Precious Metals said on Sunday it was planning a UK listing by year-end, potentially the largest metals and mining company to join the London Stock Exchange since Glencore in 2011.
Wheaton shares gave back 18 cents, or 6.7%, to $2.51.
Statistics Canada said its new housing price index increased for the fourth consecutive month, rising 0.5% nationally in August, the largest monthly increase for new home prices at the national level since May 2017.
ON BAYSTREET
The TSX Venture Exchange dropped 18.92 points, or 2.5%, to 726.45.
All but one of the 12 TSX subgroups were negative, with energy slid 3.6%, consumer discretionary dwindled 2.8%, and health-care sank 2.3%.
Only information technology held out against the negative tide, gaining 0.1%.
ON WALLSTREET
Stocks fell sharply on Monday as fears about the worsening coronavirus as well as uncertainty on further fiscal stimulus rattled traders.
The Dow Jones Industrial Average plummeted 632.85 points, or 2.3%, to 27,024.57.
The S&P 500 dipped 64.84 points, or 2%, to 3,254.63.
The NASDAQ ditched 156.68 points, or 1.5%, to 10,793.28.
The U.K. is reportedly considering another national lockdown to stop an increase in coronavirus cases. Share of Carnival Corp. were off by 4%. Southwest Airlines lost 4.6%,. and Delta Air Lines fell 7.2%, respectively.
Negotiations for a second stimulus bill could become more complicated after the passing of Supreme Court Justice Ruth Bader Ginsburg, which could lead to a bitter nomination process ahead of the election. Trump said he would nominate someone this week to take Ginsburg’s seat. Republicans and Democrats have been in a stalemate since July after provisions from the previous stimulus bill expired.
One strategist says a new coronavirus stimulus bill is now "unlikely until post-Nov. 3 as the fight over Justice Ginsburg’s empty seat will consume D.C."
Technology shares — which led the broader market off its coronavirus lows and into record territory, but have been hit hard so far in September — struggled once again. Apple, Microsoft and Amazon were all off by at least 1%.
Shares of Nikola, a one-time high-flying SPAC-turned electric vehicle play, dropped 20% after the company said founder Trevor Milton is voluntarily stepping down as executive chairman and board member.
Shares of GM, which recently took a 11% stake in Nikola, fell 5.6%.
Bank stocks sold off across the board after a report that found a number of global banks allegedly moved illicit funds. Shares of Deutsche Bank dropped 8.3%, while JPMorgan Chase fell more than 2.8%.
Meanwhile, tensions between the U.S. and China keep escalating. China’s Ministry of Commerce released long-awaited provisions on its so-called "unreliable entity list," a day after the U.S. announced a ban on WeChat and TikTok.
Prices for the 10-Year Treasury slumped, raising yields to 0.65% from Friday’s 0.67%. Treasury prices and yields move in opposite directions.
Oil prices subtracted $1.37 to $39.74 U.S. a barrel.
Gold prices sank $46.30 to $1,915.80 U.S. an ounce.
