Canada’s main stock index opened lower on Monday as tougher Western sanctions imposed over the weekend impacted global financial markets, although gains in commodity-related stocks limited the loss.
The TSX Composite started the week down 76.99 points at 21,029.01
TD Securities resumed coverage of Centerra Gold with a holding rating.
Centerra shares took three cents to $11.83.
Berenberg downgraded Galiano Gold to hold on to his buy. Galiano shares gained three cents, or 4%, to 78 cents.
CIBC reduced the target price on Onex Corp to $100 from $110.00. Onex shares fell $2.45, or 2.8%, to $83.75.
On the economic calendar, Statistics Canada said its industrial product price index rose 3.0% month-over-month in January and was 16.9% higher than January 2021, while its raw materials price index was up 6.5% on a monthly basis in January 2022. and up 30.5% year-on-year.
The Canadian dollar rose 0.18 cents to 78.58 cents US
All but three TSX subgroups were down, with Health Care down 2.4%, Consumer Discretionary down 1.4% and Financials down.
The three winners turned out to be energy, up 1.1%, utilities, up 0.3%, and gold, up 0.2%.
U.S. stocks fell Monday morning as Russian and Ukrainian officials met to discuss a possible end to hostilities between the two sides and the United States and its allies increased retaliatory sanctions.
The Dow Jones Industrials fell 449.26 points, or 1.3%, to 33,609.49
The S&P 500 fell 44.24 points, or 1%, to 4,340.41
The NASDAQ composite index lost 87.78 points, or 0.6%, to 13,606.84.
In the US, defense stocks like Lockheed Martin and Northrop Grumman rose around 2%. Banking stocks were under pressure, with JPMorgan down 2.8%. Cybersecurity stocks also outperformed, with Crowdstrike jumping 6%.
The moves come amid turmoil over the Russia-Ukraine conflict, where Ukrainian forces have held key towns including the capital of Kyiv. At the same time, Ukrainian officials arrived near the border for talks with Russian officials.
In the most recent financial developments, the Central Bank of Russia more than doubled its key interest rate from 9.5% to 20% in reaction to a currency movement that saw the ruble fall nearly 16 % against the US dollar.
Over the weekend, the United States joined allies in Europe and Canada in barring major Russian banks from accessing the SWIFT interbank messaging system. The system connects more than 11,000 banks and financial institutions in more than 200 countries and territories.
Russian military vehicles entered Ukraine’s second largest city, Kharkiv. Fighting took place and residents were warned to stay in shelters.
The price of oil jumped $3.25 to US$94.84 a barrel.
The price of gold rose from $28.60 to US$1,914.40 an ounce,
The global situation upsets the markets