Canada's main stock index slumped to a three-month low on Monday, tracking losses in global equities on growing tensions between Russia and Ukraine and ahead of major central bank meetings this week.
At 8:48 a.m. ET (14:48 GMT), the Toronto Stock Exchange's S&P/TSX composite index was down 379.99 points, or 1.84%, at 20,241.4. The index dropped 3.4% last week, falling in tow with a broader rout in equities.
Tensions between the West and Russia over a troop buildup at the Ukraine border showed little signs of abating, rattling risk sentiment across the globe.
Investors were also preparing for meetings of the Bank of Canada and the Federal Reserve on Wednesday, both of which are likely to outline policy tightening measures in the face of rising inflation.
Toronto index set for biggest weekly drop since early December
"The new (coronavirus) strain proved to be milder than initially estimated, which combined with a notable improvement in the Canadian economy and further acceleration in inflation data, allowed traders to assign a strong chance for a rate increase at this gathering," said Charalambos Pissouros, head of research at JFD Group.
Rising bond yields saw technology and healthcare fall the most among Canadian sectors, while financial stocks fell relatively lesser than their peers.
Wall Street also opened lower, setting a weak precedent for equity markets.
Hghlights
The TSX posted one new 52-week high and 20 new lows.
Across all Canadian issues there were five new 52-week highs and 137 new lows, with total volume of 78.91 million shares.
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