As cases of coronavirus rise, TSX entered a new round of sell-off in stock markets on Monday as it was concerned that the financial impact of the epidemic was still far away.
The S&P / TSX Composite Index ended 217 points, or 1.3 per cent, lower on healthcare companies, energy companies, mining companies, banks and tech names.
Losses began in Asia as soon as the week began trading and they accelerated in Europe with concerns that tougher sanctions might be in place to prevent rising coronavirus counts.
In New York, the broader S&P 500 fell 38.41 points, or 1.2 percent, while the Dow Jones closed 509 points, or 1.8 percent, to 942 points at one point.
Bank stocks suffered sharp losses on Monday morning The report alleges that many of them continue to make profits through illicit transactions with criminal networks Although previously fined for such acts.
Shares in technology companies have been on fire for the past six months, but tech companies have also been selling late for fear of rising too far and too fast.
“Anxiety is back in the market,” Sarah Potter, president of the trading website youcantrade.com, told CBC News on Monday. “You started watching that fall.”
In the early days of the epidemic, technology stocks grew largely because their earnings were legally high due to the demand for their services. Online retailer Amazon, streaming service Netflix and video conferencing company Zoom have all boomed by catering to the needs of millions of people trapped at home due to COVID lockdowns.
Canadian technology Shopify has driven the same wave Become Canada’s most valuable organization in this epidemic, Surpassing the Royal Bank of Canada. And Montreal-based payment company Nuwei Corp. Last week was the largest technology IPO in TSX history, Raises 700 million for investors who have doubled the value of the company.
“But now you’re starting to hear about these other companies, their revenues are not great.” “The reality of these companies is that the market is undervalued [and] Fear came back into the market. “
Oil down too
Other segments of the stock market are finding it very difficult to pick up the slump from suddenly weak tech companies. Oil lost nearly $ 2 per barrel of oil to trade less than 40. The reason for this is the closing of the summer driving season, and there is also Demand for this specialty has grown significantly as a result of recent corporate scandals: Jet fuel.
“Air travel is not coming back,” Laura La, chief investment officer at Brompton Funds, told CBC News.
Shares of Canadian oil companies Suncore, Batex and Canadian Natural Resources were sold because oil has been a proxy for the broader economy, which has been struggling to recover from COVID-19 for six months.
“People are worried about more shutdowns and the economy is slowing down and oil is the link to global growth,” she said.