(Reuters) - Canada’s main stock index sank as much as 13.4% to its lowest in more than four years on Monday, as oil prices tumbled and the U.S. Federal Reserve made a second emergency rate cut to avoid the world’s largest economy from falling into a recession.
- At 10:11 a.m. ET (1411 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was down 1,425.46 points, or 10.39%, at 12,290.87.
- Oil prices have been under intense pressure from the fast-spreading coronavirus as well as a bitter price war between top exporters Saudi Arabia and Russia. The energy sector dropped 14% as U.S. crude prices fell 10.1% a barrel, while Brent crude lost 12.1%.
- The U.S Federal Reserve on Sunday cut its key rate to near zero, triggering similar moves by other central banks to limit the economic fallout from the coronavirus pandemic. The financials sector slipped 9.5%.
- The materials sector, which includes precious and base metals miners, lost 7% as gold prices tumbled 4%, while copper prices slid to their lowest level in 40 months.
- Canadian home sales rose 5.9% in February from the previous month, led by a jump in activity in the Greater Toronto Area, the Canadian Real Estate Association said on Monday.
- Cineplex (CGX.TO) fell 39.3%, the most on the TSX. Great Canadian Gaming Corp (GC.TO) was the second-biggest decliner, falling 22.7% after it announced suspension of gaming facilities in Ontario, British Columbia, Nova Scotia and New Brunswick until further notice.
- The TSX posted no new 52-week highs and 127 new lows.
- Across all Canadian issues there were 11 new 52-week highs and 631 new lows, with total volume of 130.40 million shares.
Reporting by Devik Jain and Susan Mathew in Bengaluru; Editing by Vinay Dwivedi