On Monday, the 16th of March 2020, Canada’s Toronto Stock Exchange Index had pummelled nearly 10 per cent, while the Canadian currency was tumbled to a fresh four-year low against its American counterpart following a nosedive of US crude futures’ prices to below $30 per barrel.
On top of a sharply plunging crude oil futures’ prices amid a double whammy of coronavirus-led demand concerns alongside a crude oil price war triggered by the world’s largest crude oil exporter Saudi, a travel ban inclined by the Canadian Government of PM Justine Trudeau, whose wife had been diagnosed coronavirus-positive later last week prompting Trudeau to go through a self-isolation, appeared to have offset impacts of a sharp interest rate-cut of BoC (Bank of Canada).
Meanwhile, as a number of new measures unveiled by the Bank of Canada to insulate the oil-dependent nation’s economy had failed to calm down investors’ anxieties, referring to a flight-to-safety response from the traders amid rising uncertainty regarding the Covid-19 outbreak across the globe, a chief market strategist at SIA Wealth Management, Colin Cieszynski said late on Monday (March 16th), “I think there is still a lot of fear out there.
People are coming in with measures to support the economy and that is great. But nobody knows for how long this is going to drag on. ” Citing statistics, TSE’s (Toronto Stock Exchange) Composite Index wrapped up the day down by 9.9 per cent to 12,360.40 after hitting a session low of 11,883.66, the index’s lowest level since the January of 2016.
TSE Composite shed roughly 31 per cent of its most recent peak recorded on February 28th. Besides, as the US West Texas Intermediate crude oil futures’ prices had rounded off the day 9.6 per cent lower to $28.70 per barrel, the crude oil price-dependent Canadian dollar had winded up Monday’s (March 16th) market down by 1.4 per cent against its American counterpart to $0.7141, a level never witnessed since the February of 2016.