Financial numbers are shown on a television screen in Toronto as markets open for trading on Monday, March 16, 2020. The Toronto S&P/TSX composite index plunges more than 1,500 points at the start of trading. THE CANADIAN PRESS/CP

North American stock markets plunge again, loonie down, commodities fall

The drop in North American stock markets came after markets in Asia and Europe also fell

North American stock markets plunged at the start of trading today as COVID-19 fears tightened their grip on investors.

The crash came despite the U.S. Federal Reserve’s weekend to cut its key interest rate in a bid to limit the economic damage as businesses closed their doors and people stopped travelling in an effort to slow the spread of the virus.

The initial decline on North American stock markets triggered circuit breakers in Canada and U.S. that forced a brief pause trading.

READ MORE: Think before you buy or sell stocks amid COVID-19 market turmoil, B.C. professor urges

In later morning trading, the Toronto S&P/TSX composite index was down 1,404.58 points at 12,311.75 — up from the day’s low.

In New York, the Dow Jones industrial average was down 2,298.31 points at 20,887.31. The S&P 500 index was down 261.73 points at 2,449.29, while the Nasdaq composite was down 737.96 points at 7,136.92.

The Canadian dollar traded for 71.62 cents US compared with an average of 71.94 cents US on Friday.

The drop in North American stock markets came after markets in Asia and Europe also fell.

The U.S. Federal Reserve cut its short-term interest rates back to their record low of nearly zero on the weekend and also said it will buy at least $500 billion of Treasury securities and $200 billion of mortgage-backed securities to help calm the Treasury market.

The Bank of Canada, which also moved on the weekend to help ensure global U.S. dollar liquidity, cut its key interest rate by half a percentage point on Friday to 0.75 per cent and said it was ready to make further changes if required to support economic growth and keep inflation on target.

The April crude contract was down US$2.47 at US$ 29.26 per barrel and the April natural gas contract was down 6.2 cents at US$1.807 per mmBTU.

The April gold contract was down US$45.3 at US$1,471.40 an ounce and the May copper contract was down 10.45 cents at US$ 2.3595 a pound.

READ MORE: COVID-19: What’s open and closed in B.C. as a result of the novel coronavirus

The Canadian Press


Like us on Facebook and follow us on Twitter.

Coronaviruseconomy

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Deer fawning season begins in B.C.

WildSafeBC is reminding people how to react if they come across a deer fawn

The Fernie Academy hockey players sign to play in the NA3HL

Dylan Baker, Chris Consolozio, and Bowen Arola continue their hockey careers in the NA3HL

Rivers, creeks flooding across the East Kootenay due to rainstorm

Residents evacuated in Fairmont, other properties on alert due to debris flow concerns

Southeast Kootenay school district set to reopen next week

Individual schools have creative timetables and schedules in order to adhere to public health orders

Fernie SAR responds to two calls this weekend

The calls reported an injured mountain biker and an abandoned kayak

B.C. records four new COVID-19 cases, Abbotsford hospital outbreak cleared

Four senior home outbreaks also declared over, eight still active

RCMP, coroner investigate murder-suicide on Salt Spring Island

Two dead, police say there is no risk to the public

About 30% of B.C. students return to schools as in-class teaching restarts amid pandemic

Education minister noted that in-class instruction remains optional

Trudeau avoids questions about anti-racism protesters dispersed for Trump photo-op

Prime minister says racism is an issue Canadians must tackle at home, too

B.C.’s Law Enforcement Torch Run for Special Olympics goes virtual

The annual event partnering RCMP with Special Olympians is dramatically altered by COVID-19

Introducing the West Coast Traveller: A voyage of the mind

Top armchair travel content for Alaska, Yukon, BC, Alberta, Washington, Oregon and California!

Bateman program encourages people to sketch outside, connect with nature

#MyNatureSketch initiative encourages Canadians to become ‘bright-eyed three year olds’

Be cautious expanding COVID-19 bubble, Dr. Bonnie Henry tells B.C.

Senior homes stay off-limits as schools, businesses reopen

Most Read