Latest Videos

{{ currentStream.Name }}

Related Video

Continuous Play:
ON OFF

The information you requested is not available at this time, please check back again soon.

More Video

Mar 18, 2020

US$1T wipeout as TSX plunges through key level

BNN Bloomberg’s closing bell update: March 18, 2020

VIDEO SIGN OUT

Security Not Found

The stock symbol {{StockChart.Ric}} does not exist

See Full Stock Page »

Almost a trillion dollars has been wiped off Canadian stocks in a month as the rout accelerated Wednesday, taking the market through a key support level to the lowest since 2012.

The S&P/TSX Composite Index tumbled 7.6 per cent, sending it below levels plumbed during the last oil-market rout from 2014-2016. Now, investors are facing a recession as the coronavirus pandemic and a new oil-price war sent global markets spinning downwards.

Even a $82 billion (US$57 billion) fiscal stimulus package unveiled by Canadian Prime Minister Justin Trudeau earlier today did little to comfort investors facing a global economic slowdown as borders clamped down to fight the viral outbreak that has killed over 8,000 people and infected more than 200,000. Travel has been halted, global supply chains are creaking to a standstill and major central banks like the Bank of Canada have announced emergency rate cuts to stem the slowdown.

Governor Stephen Poloz said the nation’s central bank will factor in new government fiscal measures into analysis before making any additional rate moves. He added that the central bank is not ruling out more action before scheduled April 15 rate decision.

“This is probably one of the buying opportunities of my life time,” said Bob Iaccino, chief market strategist at Path Trading Partners said on BNN Bloomberg. “It’s just a matter of doing it small and being it very careful with the names you chose.”

The Canadian benchmark has lost 35 per cent of its value since its Feb. 20 peak and the nation’s currency continues to weaken against the U.S. dollar which investors have been piling into as a safe haven option. Volatility in the stock market has also hit a record as trading volume surged to levels unseen since data was compiled 35 years ago

Meanwhile, oil dropped to its lowest in 18 years after Saudi Arabia made another shock-and-awe attack in its price war with Russia. Plunging oil prices and the COVID-19 pandemic that has shut several borders across the world will inevitably lead to a recession in Canada, according to CIBC’s Chief Economist Avery Shenfeld.

 

Top Stories