'Unruly passenger' forces WestJet flight to make emergency landing in B.C.
A WestJet flight heading to Calgary had to make an emergency landing in northern B.C. Monday due to an incident involving an 'unruly passenger,' Mounties say.
Canada's main stock index moved into correction territory to start the trading week as hot U.S. inflation accelerated worries of a supercharged interest rate hike this week that could help push the U.S. economy into recession.
The S&P/TSX composite index had its second-worst day of the year by closing down 532.26 points or 2.6 per cent to 19,742.56 after falling as much as nearly 672 points in earlier trading.
U.S. stock markets suffered larger declines as the S&P 500 joined Nasdaq in bear market territory by falling more than 20 per cent from their recent highs, while the Dow Jones industrial average, like the TSX, was in correction territory with a 10 per cent drop.
In New York, the Dow lost 876.05 points to 30,516.74. The S&P 500 index was down 151.23 points to 3,749.63, while the Nasdaq decreased 530.79 points or 4.7 per cent to 10,809.23.
Markets continued Friday's moves lower after U.S. inflation data for May showed no signs of stabilization by reaching the highest level in 40 years at 8.6 per cent, higher than what economists expected.
That's setting up anticipation that the U.S. Federal Reserve could announce a 75 basis point rate increase on Wednesday to tackle inflation, up from earlier forecasts for a 50 point increase. A basis point is a hundredth of a per cent.
"That's obviously causing investors to take a more cautious approach to how they're thinking about valuations and how they're thinking about the challenging business environment going forward," said Ryan Crowther, portfolio manager at Franklin Templeton Canada.
There's also more and more talk of a recessionary environment, he said in an interview.
"And that's getting more priced into stocks as we ratchet down valuations."
Crowther said bear markets can bring great buying opportunities for those with a long time horizon and who own shares in businesses with solid fundamentals and cash flow.
All 11 major sectors on the TSX were lower with six dropping by more than two per cent.
Health care shed 5.1 per cent as Aurora Cannabis Inc. shares dropped 10.7 per cent.
Materials decreased 4.8 per cent amid a drop in metals prices that hampered producers such as Oceangold Corp., which lost 11.6 per cent.
The August gold contract was down US$43.70 at US$1,831.80 an ounce and the July copper contract was down 8.3 cents at US$4.21 a pound.
The information technology sector dropped 3.6 per cent as bond yields rose even higher as investors anticipate aggressive interest rate increases to come.
The 10-year U.S. Treasury climbed to an 11-year high of 3.373 per cent in late afternoon while the Canada 10-year government bond was 3.519 per cent. Two-year U.S. bond yields temporarily inverted with 10-year bond yields, a potential sign of recession.
Lightspeed Commerce Inc. plunged 14.4 per cent while Hut 8 Mining Corp. was down 10.5 per cent and Shopify Inc. was 9.4 per cent lower.
Although crude oil prices were relatively flat on the day, the energy sector lost 3.1 per cent with Vermilion Energy Inc. down 5.8 per cent.
"A strong oil price isn't enough to offset that sort of across-the-board risk-off sentiment that's taking place today," said Crowther.
The July crude contract was up 26 cents at US$120.93 per barrel and the July natural gas contract was down 24.1 cents at US$8.61 per mmBTU.
The Canadian dollar traded for 77.77 cents US compared with 78.27 cents US on Friday.
Monday also saw cryptocurrencies, which accelerated during the pandemic when interest rates were low, drop back to where they were in late 2020. Bitcoin lost 12.4 per cent to US$23,255 from last year's peak of US$68,991.
"Part of the enthusiasm around crypto and Bitcoin was the idea that you'd have an asset class that would perform well in a risk-off environment, and instead we've seen the opposite, with a lot of those cryptocurrencies seeing more volatility to the downside and not protecting value the way that people would have hoped," added Crowther.
The selloff prompted the crypto exchange called Celsius to halt withdrawals on Sunday evening. Celsius is partly owned by the Caisse de depot et placement du Quebec.
The pension fund manager said in an email that Celsius has been impacted by very difficult markets in recent weeks that have been accompanied with heavy crypto withdrawals.
"Celsius is taking proactive action to uphold its obligations to its customers (Celsius community) and has honoured its obligation to its customers to date. Our team is closely monitoring the situation, stated spokeswoman Kate Monfette.
A WestJet flight heading to Calgary had to make an emergency landing in northern B.C. Monday due to an incident involving an 'unruly passenger,' Mounties say.
A teenager has died after being hit by a train in northwest Calgary on Tuesday afternoon.
More than four years after COVID-19 effectively shut down the world, two new variants of COVID-19 have become the dominant strains of the novel coronavirus in Canada.
It’s the airplane seat design that launched a thousand memes and kickstarted a media storm. And now the double-level seat is back – only this time, with a twist.
After Jimmy the baby goat was shunned by his mother, a New Brunswick man took the kid on a two-week road trip across Canada.
Three people were shot to death in a small South Dakota town, and a former law officer who once served as the town's mayor is charged in the killings.
The Retail Council of Canada wants to put a stop to widespread theft within the retail industry, and industry leaders are meeting this week to find solutions.
Dermatologists are sounding the alarm about misinformation from the anti-sunscreen movement, saying not wearing sunscreen can cause cancer and other problems.
A derelict property connected to a Brampton city councillor racked up $12,500 in fines in dozens of penalty notices over several months as city officials warned it was becoming a haven for rats and a homeless encampment, records obtained by CTV News show.
It's been a long time coming, but one Oilers superfan is hoping this will be the year he gets to touch up his massive Stanley Cup back tattoo.
A man's daring rescue of a newborn wild foal that was trapped after falling down a steep embankment was caught on video over the weekend.
A Winnipeg pinball wizard is heading to the granddaddy of them all – the IFPA World Pinball Championship.
It’s the chance of a lifetime for a group of Ottawa athletes who are getting ready to represent Team Canada at the World Junior Ultimate championships in the United Kingdom.
Parishioners at Holy Trinity Anglican Church are praying for a monetary miracle, as their historic place of worship could collapse at any moment.
A Saskatchewan man made it to the summit of Mount Everest earlier this month.
IAMGOLD’s Cote Gold open pit mine, located off Highway 144 between Timmins and Sudbury, had its official ribbon-cutting ceremony this week as production ramps up.
When one is extended an invitation to the Royal Garden Party in London, England, there's undoubtedly no shortage of pomp and circumstance. Barrie, Ont. natives Megan Kirk Chang and her husband Brandon experienced just that as they entered the prestigious event hosted at Buckingham Palace on Tuesday.
An unlikely celebrity emerged from social media to cheer on the Edmonton Oilers as they face the Dallas Stars tonight in Game 1 of the Western Conference Finals.