Markets

TSX Ends Sharply Lower As Virus Cases Surge

(RTTNews) - The Canadian stock market ended sharply lower on Monday as a record spike in coronavirus cases across the globe raised concerns about economic recovery and rendered the mood bearish.

Several countries in Europe have reportedly imposed tougher restrictions to curb the spread of coronavirus infections.

Crude oil's sharp decline and fading hopes about a U.S. stimulus package before the presidential election further dented sentiment.

Energy and healthcare stocks were among the worst hit. Stocks from consumer discretionary, financial and industrials sectors too ended notably lower. Materials shares found some support early on, but lost their way as the session progressed.

The benchmark S&P/TSX Composite Index ended with a loss of 224.53 points or 1.38% at 16,079.55, nearly 90 points off the day's low of 15,990.08.

Cenovus Energy (CVE.TO) tumbled nearly 8.5%. Cenovus Energy Inc. (CVE.TO) and Husky Energy Inc. (HSE.TO) have agreed to merge in an all-stock transaction valued at C$23.6 billion, inclusive of debt. The combined company will operate as Cenovus Energy Inc. and remain headquartered in Calgary, Alberta. The transaction is expected to close in the first quarter of 2021. Husky Energy shares surged up 12%.

Air Canada (AC.TO) declined by about 6%. Canadian Natural Resources (CNQ.TO) and Chorus Aviation (CHR.TO) both ended lower by about 4.1%. B2Gold Corp (BTO.TO), Manulife Financial Corporation (MFC.TO), Royal Bank of Canada (RY.TO), Suncor Energy (SU.TO), Yamana Gold (YRI.TO), MEG Energy (MEG.TO) and Toronto-Dominion Bank (TD.TO) lost 1.2 to 2.7%.

Suncor Energy (SU.TO), BCE Inc. (BCE.TO), Canadian Imperial Bank of Commerce (CM.TO) and TC Energy Corporation (TRP.TO) also ended notably lower.

Bombardier Inc. (BBD.B.TO) and Shopify Inc. (SHOP.TO) ended with handsome gains.

Stock markets across the globe ended weak on Monday amid concerns about a resurgence in coronavirus cases, with new infections in the U.S. reaching a record high last Friday.

The major U.S. averages ended sharply lower, with an unexpected drop in new home sales adding to the woes. The Dow plunged as much as 2.3%, while the Nasdaq and S&P 500 slid 1.6% and 1.9%, respectively.

The major European indices FTSE 100, DAX and CAC 40 fell 1.2%, 3.7% and 1.9%, respectively.

In commodities, West Texas Intermediate Crude oil futures for December ended down $1.29 or about 3.2% at $38.56 a barrel, the lowest close since October 2.

Gold futures ended $0.50 up at $1,905.70 an ounce. Silver futures closed down $0.255 or 1% at $24.420 an ounce, while Copper futures shed $0.0395 or 1.3%, settling at $3.0895 per pound.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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