(Bloomberg) -- Canadian stocks tumbled on Wednesday, following oil and global markets lower, even as Prime Minister Justin Trudeau is expected to announce a C$30 billion ($21 billion) stimulus package.
The S&P/TSX Composite was down 3% at 10:16 a.m. in Toronto after falling as much as 4.4% at the open. The loonie dropped for the third straight day against the U.S. dollar, falling below 70 U.S. cents to the lowest since January 2016 as the oil rout deepened.
The Bank of Canada Governor Stephen Poloz will also speak to reporters Wednesday in a joint press conference with Finance Minister Bill Morneau.
The slump in global market is being led by sell-off in bond market. Market participants are bracing for the kind of supply surge not seen for years, after nations unveiled spending plans of more than $1 trillion to fight the coronavirus crisis.
Meanwhile, the shock in oil prices keep coming as prices plunged below $25 a barrel for the first time in almost 18 years after Saudi Arabia made another shock-and-awe attack in its price war with Russia.
Western Canadian Select crude plummeted to a record low of $9.19 a barrel and Canadian energy producers continue to hunker down by slashing their budgets and dividends to preserve balance sheets. Among the latest announcements include Calgary-based Whitecap Resources Inc. with about a 50% dividend reduction.
Stocks
- Some miners saw some relief rally, with MAG Silver Corp. gaining as much as 9.3%, Iamgold Corp. rising as much as 7.9% and Ivanhoe Mines Ltd. advanced 10%.
- Among energy stocks Enerflex Ltd., and Tourmaline Oil Corp. gained.
- CAE Inc. fell as much as 21%, to lowest level since July 2016.
- Aritzia Inc. fell as much as 21% to a record low. The company said on March 16 that it will closing all of its retail locations until further notice.
Commodities
- Western Canada Select crude oil traded at a $15.25 discount to West Texas Intermediate
- Spot gold dropped 0.8% to $1,517.94 an ounce
FX/Bonds
- The Canadian dollar weakened 1.6% to C$1.4427 per U.S. dollar
- The 10-year government bond yield remained flat at 0.952%
(Updates with individual stock and commodity prices)
©2020 Bloomberg L.P.
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