A Toronto Stock Exchange (TSX) logo is seen in Toronto in this file photo.© Mark Blinch / Reuters
Canada's largest stock market continued to fall to multi-year lows and crude oil futures traded briefly below $29 (U.S.) a barrel on Monday.
The Toronto Stock Exchange's S&P/TSX composite index was down 90.12 points, or 0.75 per cent, at 11,983.34 at 11:32 a.m. ET . On Friday, the index dropped 262.57 or 2.13 per cent to 12,073.46 — its lowest close since June 2013.
The TSX decline was broad-based, with grocery and food companies showing some of the biggest declines. Shares of George Weston , Loblaw and Metro Inc. were down more than two per cent.
The Canadian dollar remained near the lowest levels in nearly 13 years but rose slightly to 68.85 cents (U.S.), up 0.03 from Friday's close. Earlier Monday, it traded as low as 68.57 cents near levels last seen in 2003.
European shares fell on Monday, following Asia lower and led by banks after the European Central Bank said it would quiz euro zone lenders about high levels of bad loans, while oil prices tumbled on the prospect of more supply from Iran.
With U.S. markets closed for the Martin Luther King Day holiday, U.S. stock index futures slipped 0.3 per cent.
European shares opened higher but any prospect of a rally after stocks hit their lowest since December 2014 on Friday quickly fizzled out.
The pan-European FTSEurofirst 300 index, which has lost more than 10 per cent this year, dropped a further 0.2 per cent, with an index of euro zone banks down 3.3 per cent.
An ECB spokesman said on Sunday a number of banks would be asked about high levels of non-performing loans. The burden of such loans, particularly in Greece, Portugal, Spain and Italy, is curbing the euro zone's economic recovery by limiting banks' ability to lend.
Portuguese stocks were down 3.4 per cent and Italy lost 2.3 per cent
"The uncertainty in the market, be it in Europe or wherever else, is causing these banks to suffer," Mark Foulds, sales trader at ETX Capital, said, adding that the sector was also under pressure from recent volatility linked to China.
"When the markets fall like they have done, everyone feels on edge. The market is dire, and there's not the liquidity that there used to be, which can mean the market gets oversold."
Britain's FTSE 100 index fell 0.4 per cent.
Earlier, MSCI's broadest index of Asia-Pacific shares outside Japan fell to its lowest since October 2011, down 0.7 per cent.
Japan's Nikkei tumbled as much as 2.8 per cent to a one-year low before closing down 1.1 per cent. It has lost 20 per cent from a peak hit in June, meeting a common definition of a bear market.
The volatile Shanghai Composite index touched intraday lows last seen in August but closed up 0.4 per cent. It remains down nearly 18 per cent this month.
In oil markets, the prospect of a jump in Iranian crude exports after international sanctions against the country over its nuclear program were lifted at the weekend weighed heavily on oil.
Brent crude, the global benchmark, was last down 18 cents a barrel at $28.76, having earlier dipped below $28 for the first time since December 2003.
"The lifting of key sanctions should allow it (Iran) to increase crude exports this year by at least 500,000 barrels a day on average, putting further downward pressure on oil prices in the near term," Barclays analysts said in a note on Monday.
Analysts at JPMorgan said oil-producing countries will need to sell large quantities of stocks and bonds this year to cover shortfalls in their budgets resulting from the oil price slump.
They estimate sales of $110-billion bonds this year, up from $45-billion last year, and $75-billion of equities compared with $10-billion.
With a file from The Canadian Press