Canadian stock market has gone from bull to bear market in just 14 trading days, wiping out C $ 454.2 billion ($ 330.6 billion) value in the spread of the coronavirus rising and falling oil prices.
The S & P / TSX Composite dropped 20% from its peak closing Feb 20, put it in a bear market, after riding a wave of the bull for almost four years. Now, the stock has curved under fears that the virus and the recent decline in the oil sector will hammer the economy. Benchmark nosedived by 4.6% on Wednesday.
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“Intensifying concerns about the status of the virus outbreak has been exacerbated by the oil crisis and rocked financial markets this week, with the TSX energy heavy-load assumptions weakness,” said Candice Bangsund, a portfolio manager at Fiera Capital Corp. “Lack of visibility on the status of the outbreak and its implications for global growth shows the volatility will almost certainly prevail in the near term as investors digested most of the virus-related headlines in hand,” he said.
Canadian stock market has been hit in the middle of a price war between Russia and Saudi Arabia as both countries move to increase production. Oil’s decline will reply to another heavy toll on the country depend on natural resources, which generates about 9% of the gross domestic product of energy. On Monday, the benchmark dropped more than 10%, the biggest decline since the Black Monday crash in 1987.
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