Canada’s main stock index fell hard on Thursday, with financial and real-estate stocks leading losses, amid a sharp selloff in global markets after Russia launched an all-out invasion of Ukraine.
The S&P/TSX index reversed 190.6 points to begin Thursday trading at 20,533.57.
Royal Bank of Canada kicked off Canadian lenders’
first-quarter results with a stronger-than-expected 6% rise in adjusted earnings, driven by wealth management and loan growth.
Shares fell $3.31, or 2.4% in early trading to $137.18.
Loblaw Cos gained $1.20, or 1.2%, to $98.45, on beating market estimates for quarterly revenue, as demand for groceries and other essential items stayed strong.
Teck Resources reported a better-than expected fourth-quarter profit on Thursday, driven by higher prices for copper and steelmaking coal. Teck shares capsized 83 cents, or 1.8%, to $44.38.
National Bank raised the price target on Boralex to $42.00 from $41.00. Boralex shares jumped $2.47, or 7.6%, to $35.04.
CIBC raised the target price on Dream Unlimited to $52.00 to $37.00. Dream shares picked up $1.64, or 3.6%, to $47.12.
National then raised the rating on Stantec to outperform from sector perform. Stantec shares stumbled $1.87, or 2.9%, to $63.45.
On the economic calendar, Statistics Canada the number of employees receiving pay or benefits from their employer rose by 122,200, or 0.7%, in December, the seventh consecutive monthly increase.
The Bank of Canada will raise interest rates by 25 basis points on March 2, earlier than previously thought and ahead of the U.S. Federal Reserve, according to economists surveyed in a Reuters poll, which also showed expectations that rates will be higher by year-end than previously thought.
ON BAYSTREET
The TSX Venture Exchange dropped 13.1 points, or 1.6%, to 815.52.
Eight of the 12 TSX subgroups were in the red early Thursday. Financials were down 1.8%, while consumer discretionary issues slid 1.1%, and real-estate dipped 0.8%.
The four gainers were led by information technology, up 1%, while energy stocks gained 0.7%, and gold tacked on 0.3%.
ON WALLSTREET
Stocks fell sharply Thursday as Russia attacked Ukraine, causing global energy prices to jump and sending investors fleeing for the safety of fixed income assets.
The Dow Jones Industrial Index was pounded 638.59 points, or 1.9%, to 32,493.17.
The S&P 500 index fell 51.11 points, or 1.2%, to 4,174.39.
The NASDAQ Composite Index plummeted 84.85 points to 12,952.64.
After a rough open, investors appeared to be buying the dip on some of the biggest tech names. Amazon, Netflix, Alphabet and Microsoft all traded higher — erasing sharp declines from earlier in the day. Tesla was also well off its session lows, trading just 0.1% lower. Apple shares pared losses as well, and were down about 2.4%.
Outside of some tech buying, it was a broad sell-off with investors selling shares en masse. Bank of America and JPMorgan Chase lost more than 4.5% each. Boeing lost 3%. United Airlines was down more than 5%.
Among the few stocks in the green were energy and defense stocks. Exxon Mobil was slightly higher. Lockheed Martin gained 1.5% and Raytheon Technologies was marginally higher.
Moscow launched the military action in Ukraine overnight Thursday. There were reports of explosions and missile strikes on several key Ukrainian cities including its capital, Kyiv. Russian President Vladimir Putin called the invasion “the demilitarization” of Ukraine and said Russia’s plans do not include the occupation of Ukrainian territories.
Prices for the 10-year Treasury were lower, raising yields to 1.99% from at Wednesday’s 1.93%. Treasury prices and yields move in opposite directions.
Oil prices leaped $5.86, or $97.96 U.S. a barrel.
Gold prices soared $17.00 to $1,927.40 U.S. an ounce.