Canada’s main stock index futures fell on Wednesday on rising evidence that the coronavirus was sending the global economy into a deep recession.
The TSX Composite Index popped 340.25 points, or 2.6%, to close Tuesday and the month of March at 13,505.76. On the first quarter, however, the index went sharply south, 3,684.68, or 21.6%, since the end of 2019.
The Canadian dollar swooned 0.82 cents early Wednesday to 70.15 cents U.S.
June futures subsided 1.9% early Wednesday.
Teck Resources suspended its 2020 financial forecasts and said it expected steelmaking coal production to drop to about 80-85% of normal levels in an initial two-week slowdown from March 25 due to the coronavirus outbreak.
TD Securities raised the target price on Airboss of America to $15.00 from $11.00
CIBC cut the target price on First Quantum Minerals to $10.00 from $18.00
JP Morgan raised the target price on Imperial Oil to $17.00 from $15.00
Scotiabank raised the target price on TCP Energy to $72.00 from $69.00
Economically speaking, Markit Canada Manufacturing Purchasing Managers’ Index for March is due out at 9:30 a.m. EDT.
ON BAYSTREET
The TSX Venture Exchange gained 3.83 points, or 1%, for an advance on the day of to 390.38. The quarterly loss was a staggering 187.16 points, or 32.4%, however.
ON WALLSTREET
U.S. stock futures dropped early Wednesday morning and pointed to sizable declines at the open, following the end of the worst first quarter on record for the Dow and S&P 500 spurred by the coronavirus selloff.
Futures for Dow Jones Industrials plummeted 751 points, or 3.5%, early Wednesday to 21,000.
Futures for the S&P 500 lost 86.75 points, or 3.4%, at 2,483
Futures for the NASDAQ Composite stumbled 216.5 points, on 2.8%, to 7,569.75.
President Donald Trump said Tuesday evening the U.S. should prepare for a “very, very painful two weeks” from the rampant coronavirus. White House officials are projecting between 100,000 and 240,000 virus deaths in the U.S.
Investors also awaited the release of ADP and Moody’s Analytics monthly private payrolls report this morning. Markit Manufacturing PMI and Institute for Supply Management’s manufacturing index for March will also be released on Wednesday.
Overseas, in Japan, the Nikkei 225 sank 4.5%, while Hong Kong, the Hang Seng Index scaled back 2.2%.
Oil prices squirted ahead nine cents to $20.57 U.S. a barrel.
Gold prices pumped higher $7.70 to $1,603.90 U.S. an ounce.