Canada Stocks Fall With Global Markets on Virus, Economy Concern

(Bloomberg) — Canadian stocks tumbled the most since March 27, slumping with global markets on concerns a second-wave of the coronavirus will stir up new economic challenges.

The S&P/TSX Composite index fell 4.1% in the third day of losses, its longest losing streak since March 9. All sectors declined, with health care and energy especially weak. The market is still up 34% from this year’s low on March 23.

“It’s been a pretty breathless and relentless rally so we wouldn’t be terribly surprised to see a pause or a bit of a pullback,” Brian Madden, portfolio manager at Goodreid Investment said on BNN Bloomberg. “But that’s not to be misunderstood that we’re going back to the depths of the March lows.”

“If we’ve learned one thing amidst the pandemic, and policy makers’ response, it’s that they’ve adopted the ‘whatever it takes’ mantra and that ranges from unprecedented fiscal stimulus from the federal government,” Madden said.

Crude futures plunged by the most since late April, falling 9.1%.

Meanwhile, Air Canada’s Chief Executive Officer Calin Rovinescu said the Canadian government’s rules on travelers are now “disproportionate” as the Covid-19 pandemic eases in many regions. Shares of the airline fell 8.5% Thursday.

Source: Financial Post