Equities in Canada’s largest market fell on Monday to wind up November, as investors awaited the government's new spending plans and details of its emergency support measures to tackle the accelerating coronavirus infections across the country.
The so-called Fall Economic Statement will include initial investments on green stimulus measures, a "down payment" on a national childcare plan announced in September, while new COVID-19 relief measures for hard-hit sectors is also expected.
The TSX lost 206.31 points, or 1.2%, to close Monday at 17,190.25.
The Canadian dollar edged up 0.04 cents to 77.05 cents U.S.
Energy stocks suffered particularly, with Crescent Point Energy skidding 25 cents, or 9.7%, to $2.33, while Vermilion Energy fell 44 cents, or 7.8%, to $5.24.
Among financials, ONEX slipped $2.02, or 2.8%, to $69.28, while Laurentian Bank sank 83 cents, or 2.5%, to $32.62.
In the real-estate sector, REAL Matters deleted 93 cents, or 4.6%, to $19.10, while RioCan REIT units dropped 58 cents, or 3.2%, to $17.59.
The gainers were led by gold issues, especially Teranga Gold, advancing 50 cents, 4.3%, to $14.34, while B2Gold Corp took on 22 cents, or 3%, to $7.24.
In other resource stocks, Endeavour Mining marched ahead $1.01, or 3.7%, to $30.73, while Dundee Precious Metals added 25 cents, or 3%, to $8.55.
In health-care, Aurora Cannabis jumped $1.43, or 10.6%, to $15.19, while rival Aphria leaped 69 cents, or 6.8%, to $10.83.
On the macroeconomic front, Statistics Canada said municipalities issued building permits worth $8.2 billion in October, down 14.6% from the previous month.
September's peak was the second highest value on record, with October's results more in line with recent months.
The agency also said its industrial product price index fell 0.4% in October, driven mainly by lower prices for lumber and other wood products.
The Raw Materials Price Index increased 0.5%, mostly due to higher prices for animals and animal products and crop products.
ON BAYSTREET
The TSX Venture Exchange fought its way out of the red, and gained 1.22 points to finish Monday at 750.42.
Eight of the 12 TSX subgroups were pointed downward, with energy collapsing 5.8%, financials sliding 1.5%, and real-estate off 1.4%.
The four gainers were led by gold, up 0.5%, while materials and health-care each added 0.4%.
ON WALLSTREET
Stocks fell on Monday as traders booked some profits given the historically strong gains logged in November.
The Dow Jones Industrials dropped 271.13 points at 29,638.64.
Travelers and Chevron were among the worst-performing Dow stocks, Travelers falling 3.6% and Chevon off 4.5%.
The S&P 500 slid 16.72 points to 3,621.63. Energy led the way lower in the S&P 500, losing 5.4% for its worst day since June 24.
The NASDAQ shed 7.11 points to 12,198.74.
Market sentiment took a hit after Reuters reported that the Trump administration is weighing blacklisting Chinese leading chipmaker SMIC as well as national offshore oil and gas producer CNOOC. The move would limit their access to American investors and escalate tensions with China before President-elect Joe Biden takes over.
Cruise lines and airlines, two of the best-performing groups this month, struggled on Monday. Carnival dipped 7.4%, and Norwegian Cruise Line slid 3.4%. American Airlines dropped more than 5%, and Delta pulled back by 2%.
Despite Monday’s losses, the major averages posted sharp monthly gains.
The blue-chip Dow rose 11.8% in November, its best monthly performance since January 1987, as promising vaccine developments boosted confidence of a smooth economic reopening. The S&P 500 soared 10.8% and the NASDAQ climbed 11.8%, in November, their biggest monthly advances since April.
Cyclical sectors, those most economically sensitive groups, led the market’s November rally amid a slew of positive vaccine news. Energy, 2020's biggest loser, jumped 26.6% this month, while financials, industrials and materials all gained at least 12.2% during this period.
Boeing and American Express led the way higher for the Dow, the planemaker rising 45.9% while the bank spiked 30%, in November. Chevron, JPMorgan Chase, Disney and Honeywell each rose more than 20% this month.
More than 266,000 people have died from the coronavirus in the U.S., and more than 13 million cases have been confirmed in the country, according to data from Johns Hopkins University.
Dr. Anthony Fauci, the nation’s top infectious disease expert, said on Sunday that the U.S. is heading into a tough period of the pandemic in which restrictions and travel advisories will be necessary.
Los Angeles County in California imposed a new stay-home order Friday as cases surged in the nation’s most populous county. Meanwhile, New York City public schools will begin to reopen on Dec.7.
However, Moderna said Monday that new trial data showed its Covid-19 vaccine candidate was more than 94% effective. The company added it plans to ask the Food and Drug Administration for emergency clearance later in the day. Moderna shares rallied 20.2%.
Prices for the 10-Year Treasury climbed slightly, lowering yields to 0.85% from Friday’s 0.84%. Treasury prices and yields move in opposite directions.
Oil prices dipped 36 cents to $45.17 U.S. a barrel.
Gold prices dropped $9.20 to $1,778.90 U.S.
