Canadian markets open lower amid global selloff aftershocks
Canadian markets are catching up to a global selloff on Tuesday that rocked major stock indices around the world the day before.
The benchmark S&P/TSX index fell 542 points to start trading on Tuesday, a decline of 2.44 per cent, before recovering some of those losses by 10 a.m.
The index also fell nearly 500 points in trading on a tumultuous Friday.
Markets in Canada were closed for a holiday on Monday, meaning Canadian stocks are only now catching up to a global selloff that continued to rock markets worldwide to start the week.
Weak jobs figures released in the United States on Friday stoked trading woes amid renewed fears of a recession hitting the economy. Tech stocks were hit particularly hard in the selloff.
Both the S&P 500 and the Nasdaq Composite posted losses of at least three per cent each in the previous session.
But even as Canadian stocks slipped there were signs of recovery elsewhere on the markets.
Wall Street’s main indices rose in volatile trading on Tuesday, as investors looked for bargains after a rout in the previous session, while dovish rate commentary from Federal Reserve officials also lifted the mood.
Most megacap and growth stocks, which together lost US$200 billion in market value on Monday, gained as Nvidia bounced back 2.3 per cent.
Apple slipped 1.9 per cent, extending a nearly five per cent drop on Monday after Warren Buffett’s Berkshire Hathaway cut its stake in the iPhone maker by half.
The Nikkei stock index soared on Tuesday in a relief rally after plummeting 12.4 per cent on Monday, its biggest percentage drop since the 1987 Black Monday crash. It ended Tuesday’s trade up 10.2 per cent at 34,675.46.
— with files from Reuters
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