Canadian stock markets fell more than the S&P 500 index in early trading on Monday as concerns over slowing growth offset optimism that soon the Federal Reserve may be willing to slow down its pace of rate hikes.
The S&P/TSX composite index was down 238.36 points at 14,971.15 after it closed at 14,908.13 on Friday.
That decline was also the largest one-day percentage decline since December 15.
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The S&P 500 index was also lower, falling 20.74 points to 2,895.38 in early trading.
Earlier in the morning, the Toronto index fell as much as more than 250 points after data showed a slight dip in the country’s economy in February, after a stronger-than-expected January.
Meanwhile, bond yields rose and the U.S. dollar fell, with investors awaiting a decision on Tuesday by the Federal Reserve on whether it will raise U.S. interest rates for the second time this year.
A Reuters survey of U.S. primary dealers on Friday showed all of them expect the Fed to raise rates at its meeting this week.
In New York, the Nasdaq composite index was up 46.44 points at 7,283.42 after dipping as low as 7,201.53 early on Monday. The S&P 500 index was up 12.99 points at 2,890.17.
The Canadian dollar was trading at an average of 79.03 cents US, down 0.01 of a U.S. cent, according to Bloomberg data.
The latest poll showed that most of Canada’s 11 largest companies expect 2019 profit to decline for the first time since 2010, according to data compiled by Bloomberg.
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Excluding mining firms, nine of those firms see earnings per share falling over the next 12 months, the data showed.
The price of oil was near its highest level of the year at US$70 a barrel as markets anticipated action by OPEC to limit global crude output and record U.S. exports buoyed prices.
U.S. West Texas Intermediate (WTI) crude was at US$70.72 per barrel, up 29 cents, or 0.5 per cent, from its last close. It earlier rose as high as US$70.97 a barrel.
In other metals, copper was down 0.02 per cent at US$5,644 a tonne.
The benchmark 10-year U.S. Treasury note rose 2/32 in price to yield 2.8878 per cent, from 2.971 per cent late on Friday.