TSX sets new two-year low amid energy sector struggles

Canada’s main stock index opened the week by reaching the lowest point in more than two years Monday as the influential energy sector was hurt by the price of oil dropping to its lowest level since the fall of 2017.

The S&P/TSX composite index lost 232.42 points to 14,362.65, the lowest level since September 2016.

The market hit an intraday high of 14,577.60 in morning trading as volume surpassed 264 million shares.

All sectors of the market were down, led by cannabis-heavy health care, followed by technology.

Energy lost 2.45 per cent, while industrials was off 1.8 per cent and materials was down slightly despite higher metals prices.

In New York, the Dow Jones industrial average lost more than 2 per cent, or 507.53 points, at 23,592.98. The S&P 500 index was down 54.01 points at 2,545.94, while the Nasdaq composite was down 156.93 points at 6,753.73.

While excess supply has driven past fluctuations of crude prices, new economic data from China showing that the world’s second-largest economy continues to slow caused investors to fret about the weakening global economy, says Craig Fehr, Canadian markets strategist for Edward Jones.

“I think that combination of demand concerns and still high supply levels are what have really pushed oil prices to fresh lows,” Jones said in an interview.