Canada’s main stock index fell at the open on Monday, as tremors of U.S. regulators closing Silicon Valley Bank (SVB) continued to knock down financials, while energy stocks fell on lower oil prices.
The TSX thundered plunged 248.61 points, or 1.4%, to begin Monday at 19,490.31, after a loss last week of nearly 4%.
The Canadian dollar crept up 0.1 cents to 72.72 cents U.S.
A Canadian banking regulator on Sunday said it was taking temporary control of SVB’s unit in the country.
Helping cushion the blow, however, a softer dollar aided commodity prices, which tends to benefit the resources-heavy TSX.
In earnings, architectural products distributor Adentra Inc will be reporting its fourth-quarter results before markets open. Adentra shares doffed $3.49. or 11.6%, to $26.55.
ON BAYSTREET
The TSX Venture Exchange lost 8.46 points, or 1.4%, to start the week at 603.03
Eight of the 12 TSX subgroups sank in the first hour, with energy slumping 2.9%, financials poorer by 2.1%, and health-care off 1%.
The four gainers were led by gold, brightening 4.5%, materials, climbing 1.2%, and utilities up 0.9%
ON WALLSTREET
Stocks whipsawed on Monday as traders assessed a plan to backstop all the depositors in failed Silicon Valley Bank and make additional funding available for other banks.
The Dow Jones Industrials backslid 7.26 points at 31,909.96, after four straight days of losses.
The S&P 500 hesitated 5.55 points to 3,856.04.
The NASDAQ Composite gained 13.49 points to 11,155.35.
Bank stocks remained under pressure following last week’s slide, with JPMorgan Chase and Citigroup falling. Regional banks fell even more, led by a 65% drop in First Republic.
Meanwhile, other areas of the market, such as some technology stocks like Apple and defensive names including Johnson & Johnson and Eli Lilly, were able to advance.
All Silicon Valley Bank depositors will have access to their money starting Monday, according to a joint statement from the Treasury Department, Federal Reserve and the Federal Deposit Insurance Corporation.
The Federal Reserve also said it is creating a new Bank Term Funding Program aimed at safeguarding deposits. The facility will offer loans of up to one year to banks, saving associations, credit unions and other institutions.
President Joe Biden said shortly before the market opened on Monday that Americans can trust the U.S. banking system.
Elsewhere, investors are watching various economic reports this week. Tuesday’s consumer price index report is the last major inflation data release ahead of the Fed’s next meeting, ending March 22. February retail sales and the producer price index are also on deck.
Prices for the 10-year Treasury rose sharply, lowering yields to 3.49% from Friday’s 3.69%. Treasury prices and yields move in opposite directions.
Oil prices erased $1.94 to $74.74 U.S. a barrel.
Gold prices hiked $43.30 to $1,910.50 U.S. an ounce.