At the open: TSX falls as energy stocks tumble - The Globe and Mail

Canada’s main stock index opened lower on Thursday, dragged down by the energy sector as hopes of a recovery in fuel demand were dampened by record-high U.S. crude inventories and a surge in global coronavirus cases.

At 9:30 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was down 73.83 points, or 0.48%, at 15,220.55.

Wall Street main indexes opened lower on Thursday following their worst day in two weeks, as investors were unnerved by an alarming rise in new coronavirus cases and an elevated weekly jobless claims number.

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The Dow Jones Industrial Average fell 80.72 points, or 0.32%, at the open to 25,365.22.

The S&P 500 opened lower by 3.73 points, or 0.12%, at 3,046.60. The Nasdaq Composite dropped 9.81 points, or 0.10%, to 9,899.36 at the opening bell.

Oil slipped towards $40 a barrel on Thursday after a more than 5% fall the previous session, as record-high U.S. crude inventories and a resurgence in coronavirus cases cast doubt on a recovery in fuel demand.

U.S. crude stocks rose 1.4 million barrels, the Energy Information Administration said on Wednesday. This hit crude prices, although other details the EIA reported, such as a fall in gasoline stocks as demand rose, lent limited support.

“The report was another nail in the bulls’ coffin although it was not as depressing as the price fall suggests,” said Tamas Varga of oil broker PVM. “On the positive side, oil consumption is healthy.”

Brent crude fell 11 cents, or 0.3%, to $40.20, and traded as low as $39.47. The global benchmark dropped 5.4% on Wednesday. U.S. West Texas Intermediate (WTI) crude declined 25 cents, or 0.7%, to $37.76.

Oil and equities were also pressured by a rise in coronavirus cases. New infections have surged in some U.S. states and Australia posted its biggest daily rise in cases in two months.

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Reuters.

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2020-06-25 09:16:37Z
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