Dow Jones plunges as North American losses deepen

Losses in the North American stock markets sank deeper into the red on Monday afternoon after the Dow Jones index fell more than 1,000 points following its worst weekly decline since 2016 on Friday.

The benchmark Dow Jones Industrial Average lost 1,043.65 points and was down 4.2 per cent to 24,455.76 points in afternoon trading.

It was the first time the Dow fell below 25,000 points since Jan. 4.

On Friday, it lost 666 points, its biggest daily decline since during the global financial crisis in December 2008.

The S&P 500 lost 1.9 per cent to 2,708.96, while the tech-heavy Nasdaq Composite was lower by two per cent to 7,098.05. Both indexes had lost about two per cent on Friday.

The financial, energy and industrial sectors were among the biggest losers in the U.S.

Derek Holt of Scotiabank Economics said investors’ “fear” in the market was the result of several factors.

“First, strained valuations, second, central bank concerns in a week that is full of global central bank decisions; plus a U.S. shutdown risk by Thursday as the debt ceiling suspension draws to a close in a little over a month,” he said in a note.

Bond yields

Rising bond yields also continued to weigh on shares as investors worried that signs of rising inflation could make the Federal Reserve raise interest rates faster than anticipated.

As interest rates rise, the value of existing bonds falls and borrowing to invest becomes more expensive.

The yield on the 10-year U.S. treasury note surged to 2.885 per cent overnight, a four-year high, but fell back to 2.841 per cent in the morning. 

Robert Kavcic of BMO Capital Markets said in his morning note Monday that despite the sell-off in equities, the rise in treasury yields has not relented.

“Surging bond yields and the realization that monetary tightening is now a real and more significant factor,” he said.

“This just serves to reinforce our expectation that a March rate hike is coming, and that the three-per year pace that we have in our forecast right now is probably the starting point.”

Canadian shares

In Toronto, the S&P/TSX Composite was down 1.1 per cent to 15,434.76 points in the afternoon.

The index had lost 255 points, or 1.6 per cent, on Friday, marking its worst decline in nearly five months. It had also lost four per cent for the week, marking its worst weekly decline since January 2016.

Financials and energy shares weighed on the index as benchmark U.S. crude fell 1.8 per cent to $64.26 US a barrel in New York.

Shares of Toronto-Dominion Bank and Bank of Montreal were down about 2 per cent.

On the other end, healthcare and the materials sectors were up on Monday after seeing losses for much of last week.

Shares of Aurora Cannabis were up over 13 per cent after announcing that it would buy 20 per cent stake in an Alberta liquor store chain.

Weaker loonie

The Canadian dollar was trading at 80.03 US cents, down from Friday’s average price of 80.78 US cents.

Despite the loonie trading lower in a “risk off” market, Bipan Rai of CIBC Capital Markets said it does remain less sensitive than most other currencies to the global equities sell-off. 

“Global central banks continue to diversify into the Canadian dollar. As of the third quarter of 2017, the amount of Canadian dollar reserves owned by central banks had grown by 85 per cent since the beginning of 2014,” he said.

“Currently, we estimate that central banks own around 30 per cent of the domestic sovereign market.”

Rest of the world

The majority of Asia’s major markets closed down on Monday as Wall Street’s sell-off on Friday raised concerns about an overdue correction in equities.

The region’s biggest market, Japan’s benchmark Nikkei 225 tumbled 2.6 per cent, while Hong Kong’s Hang Seng index lost 1.1 per cent. 

The lone bright spot was Mainland China’s Shanghai Composite, which reversed losses to close up 0.7 per cent. 

In Europe, the benchmark Stoxx 600 finished lower by 1.6 per cent — marking its lowest level since November. It’s the sixth consecutive day of losses for the index.

That is the biggest decline for the index since the United Kingdom voted to leave the European Union in June 2016.

German coalition talks heightened concerns of political instability in the region after the country’s political parties struggled to form a government.

Source link

CBC News Canada

CBC News Canada

CBC News Canada is Canada's Online Information Source. Comprehensive web site for news, entertainment, sports, business, and a complete guide to CBC-TV, CBC Radio and CBC News Network
Buds2Go.ca is not responsible for, nor do we always share the opinions of the content posted on our website through our partners or independent authors.

Leave a Reply

What is a Sativa?

Sativa strains of medicinal marijuana are usually uplifting and stimulating. If you’ve ever smoked or ingested cannabis that makes everything funny and puts you in a great mood, it was probably from a Sativa strain. It creates a feeling of comfort, non-drowsy, and usually introspective highs. The effects of smoking or ingesting a Sativa makes them particularly popular among artists and creatives. The most popular medicinal benefits range from treating mental and behavioral problems, to treating depression, stress and ADHD.

What is an Indica?

The major difference between Sativa’s and Indica’s is while a Sativa can make you feel alert, active, and aware, an Indica will have a relaxing feel on the body. The physical effects of an Indica strain commonly include a drowsy and mellow mood with stress and pain relief. Indica’s are one of the more suggested strains when using it for medicinal purposes as it effectively treats sleeping disorders such as insomnia, fibromyalgia, body aches and pains. Indica’s are also commonly used for treating Multiple Sclerosis, Parkinson’s disease, Fibromyalgia and Lupus

Why Choose Hybrid?

The benefits to smoking or ingesting a Hybrid strain are simply as follows. Hybrid’s offer the best of both worlds combining several qualities of each containing strain. Some Hybrid’s are Indica dominant, which will offer pain relief and / or mellow mood, however may contain up to 50% Sativa so it will not make you too drowsy. Other’s may offer a Sativa dominant strain, which will encompass several calming benefits and pain relief, but also give a mellow, yet energetic high.

Why use Buds2Go?

We offer a guaranteed, reliable medicinal marijuana buying and shipping experience for our members. There are still thousands of people who don’t live in areas that are served by local dispensaries such as Vancouver and Victoria BC. We offer mail order marijuana in canada that is both fast and discreet and always include tracking numbers. Mail Order Medical Marijuana - Medicinal Cannabis Dispensary - Buy Weed Online