Article content continued

Canadian energy companies were also again hit hard on Thursday, as the S&P/TSX Capped Energy Index was off by approximately 16.5 per cent. Oil and gas producers have faced a harsh selloff since last weekend, when Saudi Arabia slashed its crude costs, sparking a price war in energy markets. The battle began after Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries failed to strike a deal with Russia for new production cuts.

“You’re seeing definite levels of panic out there,” Toronto-based money manager John Zechner said Thursday morning. “Panic is what creates bottoms generally, but not necessarily on the first day.”

Amid the market madness, governments around the world have been trying to curb the spread of COVID-19 and weaken its economic sting with various spending plans. Trudeau announced on Wednesday a more-than-$1-billion fund to respond to the virus, but already there are signs more stimulus could be required to really jolt the economy.

Meantime, investors may have a few more rough days ahead of them.

“This could go on for a while, but the intensity of the selling will start to ease, otherwise stock markets will be down to zero in a week or two, and that isn’t going to happen,” Levine said in an email. “It will end when it will end, and absolutely nobody has any idea when, no matter what they may say or predict.”

Financial Post with files from Bloomberg News



• Email: gzochodne@nationalpost.com | Twitter: GeoffZochodne