Energy sector ravaged as TSX plunges 10.3 per cent amid global oil price war

Canadian stocks took a historic hammering Monday after global crude prices collapsed and the spread of the new coronavirus continued to threaten the global economy.

The blue-chip Dow Jones Industrial Average ended up shedding more than 2,000 points, or about 7.8 per cent, finishing the day at 23,851.02. The S&P 500, meanwhile, closed at 2,746.56, 7.6 per cent lower, after losing more than 225 points. There have now been more than 109,000 confirmed cases and 3,800 deaths linked to COVID-19, according to the World Health Organization, with the outbreak directly affecting companies in sectors such as airlines and hospitality. The virus has also raised concerns about disrupted supply chains and prompted talk of governments injecting fiscal stimulus into their economies, potentially via tax breaks or infrastructure spending.

All of this has added up to trouble for Canadian oil and gas producers, shares of which were walloped on Monday. The S&P/TSX Capped Energy Index, a collection of oil and gas companies, declined by more than 27 per cent for the day. Investors searching for safe havens from the storms raging across the equity and commodities markets helped push down bond yields again as well. The yield on the Government of Canada’s 10-year bond skidded to approximately 0.54 per cent, which was almost the same as that of the five-year bond.

Source: Energy Industry News (energyindustrynews.net)

Guess that $4.7 billion corporate welfare giveaway to already profitable O&G companies wasn’t the best move? Now jkenney wants the rest of Canada to help AB out? Not a chance. Start a PST, cancel the tax cuts. You know responsible fiscal management you keep howling about.

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