Historic Stock Market Drop Exposes Canada’s Economic Fault Lines

Never in modern trading history have Canadian stocks fallen so much in a single day of trading as they did this week. Growing alarm over the coronavirus and plummeting oil prices have been catalysts for the slump, Bloomberg News reported. But one historian sees two underlying factors at play: a fractured geopolitical environment that has coincided with market volatility the world over, and Canada’s thin corporate base. While the S&P/TSX Composite Index clawed back some of its lost ground on Friday, it is still down 24% from its record high on Feb. 20. The decline this week alone included two harrowing drops of 10% and 12%. The latter, on Thursday, was the biggest one-day percentage decline since at least 1977 when the first major index on the exchange was launched. Read more