At the open: TSX falls amid increasing signs of economic duress – The Globe and Mail

Canada’s main stock index fell on Wednesday after data showed manufacturing activity in March hit a nine-year low in some of the clearest evidence yet of the domestic economic damage from the spreading coronavirus pandemic.

The IHS Markit Canada Manufacturing Purchasing Managers’ index (PMI), fell to a seasonally adjusted 46.1 in March, the lowest in data going back to October 2010. A reading below 50 shows contraction in the sector.

Adding to the alarm was a rising death toll from the coronavirus outbreak in Canada, which jumped by 35% to 89 in less than a day on Tuesday, and the major province of Quebec said it was running low on key medical equipment.

At 12 p.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was down 418.60 points, or 3.13%, at 12,960.15

Ten of the index’s 11 major sectors were trading lower, with only the material sector trading 1.4% higher.

Mounting fears that the near-global lockdown to fight the coronavirus pandemic would spark a deep economic downturn prompted safe-haven buying of gold, shoring up the yellow metal’s prices.

The energy sector fell 3.8% as oil prices dropped after a report showed a big rise in U.S. inventories and a widening rift within OPEC heightened oversupply concerns.

Reuters

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