Uggs Canada Ugg
  • Home
  • News
  • Lifestyle
  • Business
  • Entertainment
  • Fashion
No Result
View All Result
Uggs Canada Ugg
  • Home
  • News
  • Lifestyle
  • Business
  • Entertainment
  • Fashion
No Result
View All Result
Uggs Canada Ugg
No Result
View All Result

How the Coronavirus Pandemic Has Affected Canadian Markets

JamesHarris by JamesHarris
June 28, 2022
in Business
0
Coronavirus Pandemic
406
SHARES
2.4k
VIEWS
Share on FacebookShare on Twitter

The coronavirus pandemic has had a devastating impact on Canada. At the time of this writing, the virus had infected more than 65,000 people in the country and had killed more than 4,000. It has also severely impacted the economic well-being of the nation. Not only have millions of Canadians lost their jobs, but there have also been dramatic swings in the local stock market.

This article describes how the pandemic has affected the stock market as well as other important markets in the country.

Table of Contents

  • The Stock Market
  • Oil and Gas Markets
  • The Housing Market
  • Summary

The Stock Market

While news of the turmoil in North American financial markets has focused mostly on the major exchanges in New York, the virus has also greatly affected the Toronto Stock Exchange (TSX), which is the ninth largest stock market in the world. It also has more oil and gas companies listed on it than any other stock market, making it particularly vulnerable to the collapse in energy prices that has followed the onset of the pandemic.

The S&P/TSX Composite, which is considered the headline index for the Canadian equity market, started off the year well. On February 20, it was at 17,944.06, which represented a 5.2% increase from the beginning of the year. Then, the virus sent it, along with all the world’s other financial markets, crashing downward. One month later, on March 23, the S&P/TSX Composite was at 11,228.49. This represented a dramatic fall of a 37.4%.

However, there is reason for optimism. In late March, the TSX began to rebound, much like stock markets did elsewhere. Then, in April, it steadily grew, with the composite index rising from 13,378.75 to 14,780.74. This represented a whopping 10.5% increase for the month, which was one of the best months that it has had in years.

So, while the Canadian stock market is still down for the year by a considerable amount, it is moving in the right direction. This should give hope to stock investors going forward, especially those investing in non-energy stocks, though they still need to be cautious.

Oil and Gas Markets

The oil and gas industry is a major component of the Canadian economy, accounting for more than 10% of the nation’s gross domestic product. So, it has been especially hard hit during the pandemic, as the prices of fossil fuels have plummeted due not only to the shuttering of production facilities across the world but also because of the lack of travel.

Things got so bad that, at one point in April, the price of oil actually fell below zero.

But like with the stock market, there is reason for at least some optimism. The Canadian government is spending C$2.5 billion to prop up the energy industry, which experts believe will save 10,000 industry jobs. The price of oil has been rising, too, albeit sporadically and with lots of volatility. It even rose 50% over the course of 3 days in late April. Don’t worry if you were unable to find work as a result of the pandemic; we’ve got your back! Here are some of the jobs that are in great demand in Canada as a result of Covid-19.

The Housing Market

Like with other markets in the country, the coronavirus pandemic has adversely affected the Canadian housing market. While prices so far have been stable during the crisis, largely due to generous government support programs, experts believe the market is essentially a ticking time bomb. They think that the pandemic could eventually cause housing prices to fall as much as 15% in the next few years.

A big part of the reason is that Canadians, in comparison to many other developed nations, carry a lot of consumer debt. Household debt-to-disposable income in the country is at 176%. This, combined with high employment, will likely eventually send the market into a tailspin, especially as government support programs will only last so long.

Decreases in prices are expected to be felt most in the oil-producing sections of the country while those living in the Toronto metropolitan area should expect the most stability.

Of course, if the pandemic ends soon and the economy quickly rebounds, housing prices will likely rebound with it.

Summary

As in other countries across the world, the coronavirus pandemic has caused tremendous volatility in Canadian markets. But, just as the outbreak of the virus has stabilized recently in the country, there is good reason for having optimism that most markets will stabilize as well.

Tags: Affected Canadian MarketsCoronavirus Pandemic
Previous Post

Find Out the Differences Between Put Options and Call Options

Next Post

3 Best Emoji Apps to Enhance Your Messaging

Next Post
Emoji Apps

3 Best Emoji Apps to Enhance Your Messaging

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular.

    • Trending
    • Comments
    • Latest

    ᐅ Refuses to Elaborate Further – Meaning & Origin (Meme explained)

    October 27, 2021
    Imginn

    ImgInn – Download Instagram Videos, Stories And Posts

    February 9, 2023
    Disco ball hanging from the ceiling

    59 Disco-Inspired Team Names – Actually Good Team Names

    April 29, 2021
    Fashion Trends You Won’t Want to Miss

    Wholesalers Revolutionizing the Fashion Industry

    January 5, 2023
    Keira Knightley's Parents Didn't Want Her To Audition For Star Wars: The Phantom Menace

    Keira Knightley’s Parents Didn’t Want Her To Audition For Star Wars: The Phantom Menace

    February 9, 2023
    Comma after “basically” — All You Need to Know

    Comma after “basically” — All You Need to Know

    February 9, 2023
    Imginn

    ImgInn – Download Instagram Videos, Stories And Posts

    February 9, 2023
    Discover the Popular Strains

    Discover the Popular Strains: See What’s Available in Canada

    February 9, 2023

    Uggs Canada ugg, A powerful and stylish magazine where you can find many useful articles that will upgrade your life.

    Contact Us: taylormorlando@gmail.com

    1998 Bay Street Toronto, ON M5J 2R8, Canada

    Mos Recent

    Keira Knightley's Parents Didn't Want Her To Audition For Star Wars: The Phantom Menace

    Keira Knightley’s Parents Didn’t Want Her To Audition For Star Wars: The Phantom Menace

    February 9, 2023
    Comma after “basically” — All You Need to Know

    Comma after “basically” — All You Need to Know

    February 9, 2023
    • About
    • Privacy Policy
    • Contact Us

    © 2023 Uggs Canada Ugg

    No Result
    View All Result
    • Home
    • News
    • Lifestyle
    • Business
    • Entertainment
    • Fashion

    © 2023 Uggs Canada Ugg