Canada’s main stock index plunged into correction territory on Friday as an increase in global coronavirus cases unsettled investors worried about its economic impact.
Investors typically consider a technical correction in a security or index to be a drop of 10% or more from its recent peak.
The TSX Composite Index dropped 570.7 points, or 3.4%, to stagger into noon EST at 16,146.74
The Canadian dollar retreated 0.12 cents to 74.58 cents U.S.
First Majestic Silver fell 33 cents, or 3.3%, to $9.43 while Seabridge Gold was down $3.02, or 18.3%, to $13.48.
The largest percentage gainers on the TSX were SNC Lavalin, which jumped $1.15, or 4.1% to $29.27, after posting better-than-expected fourth-quarter revenue, and Cascades, which rose three cents to $10.94.
On the economic front, Statistics Canada reported real gross domestic product increased 0.3% in December, after edging up 0.1% in November, as 15 of 20 industrial sectors grew
The agency’s industrial product price index was down 0.3% in January, driven primarily by lower prices for energy and petroleum products, while the raw materials price index fell 2.2%, during the same month, because of lower prices for crude energy products.
ON BAYSTREET
The TSX Venture Exchange tumbled 35.16 points, or 6.8%, midday Friday to 485.43
All 12 TSX subgroups were lower midday, with gold falling 6.8%, materials slouching 6%, and utilities sinking 3.7%.
ON WALLSTREET
Stocks tumbled once again on Friday, adding losses to the market’s worst week since the financial crisis, as worries over the coronavirus and its impact on the economy continue to rattle investor sentiment.
The Dow Jones Industrials continued their downward progress, falling 733.2 points, or 2.9%, off its lows of the morning, to reach lunch hour at 25,033.44. The 30-stock average found itself in correction territory along with the S&P 500 and NASDAQ Composite.
The Dow had closed at a record high on Feb. 12. It only took the S&P 500 six days to fall from an all-time high into correction levels, marking the broad index’s fastest drop of that magnitude outside of a one-day crash.
The broader S&P 500 was hammered 72.39 points, or 2.4%, to 2,904.99. Thursday’s declines also put the Dow and S&P 500 down more than 10.5% each for the week, on pace for their worst weekly performance since 2008.
The tech-heavy NASDAQ also came off its lows of the morning, but remained behind 141.02 points, or 1.7%, to 8,425.16.
Thursday’s declines also put the Dow and S&P 500 down more than 10.5% each for the week, on pace for their worst weekly performance since 2008.
Norwegian Cruise Line and American Airlines are among the worst-performing S&P 500 stocks this week, dropping more than 20% in that time. Las Vegas Sands has lost more than 10% week to date. Regeneron Pharmaceuticals is the only S&P 500 component that is higher for the week.
Concerns over the coronavirus have also led several companies to issue earnings and revenue warnings. Microsoft said Wednesday one of its key divisions may not meet the company’s previous revenue guidance. PayPal also warned about its outlook on Thursday.
Caterpillar — a bellwether stock for global growth — slid 3%. Apple shares dropped 5.7% while Apple shares dropped 5.7% while Boeing and Coca-Cola also fell more than 5%.
New Zealand and Nigeria reported overnight their first coronavirus cases. South Korea, meanwhile, confirmed more than 500 new cases. China reported 327 additional cases.
The outbreak has also raised questions over potential intervention from central banks around the world. Kevin Warsh, a former Federal Reserve governor, told the media he expects global monetary policy makers to take action soon in response to the virus spreading. However, St. Louis Fed President James Bullard said rate cuts are only a possibility if the coronavirus turns into a pandemic.
Prices for the 10-Year U.S. Treasury gained sharply, weighing yields to 1.16% from Thursday’s 1.27%. Treasury prices and yields move in opposite directions.
Oil prices faded $2.42 to $44.67 U.S. a barrel.
Gold prices lost $51.70 to $1,590.30 U.S. an ounce.