Global financial stocks slumped once again after a brief relief rally on Tuesday as Credit Suisse hit a record low after the Swiss lender's biggest backer said it would not buy any more shares. CS's sharp declines revived fears of a banking crisis in the aftermath of the collapse of U.S. banks Silicon Valley Bank (SVB) and Signature Bank. Energy stocks were the top decliners, falling 5.7%, as oil prices extended losses with Brent crude hitting a three-month low. Canada's energy sector is on track to post its worst single-day performance so far this year. Financials , Canada's largest sector by weight, joined a global selloff in bank stocks, falling 2.2%. "The TSX is very heavily weighted to oil and financials and if there's any sort of loss in confidence or instability in that sector, it will underperform," said Matt Manara, partner and portfolio manager at Avenue Investment Management. Canadian stocks have lost nearly all of their yearly gains in the last few days, with the index now at par after the collapse of U.S. lenders SVB and Signature sparked contagion concerns in global financial stocks.
Among individual stocks, Canadian Pacific Railway surged 5.7% after the U.S. transport regulator approved its $31 billion deal to acquire U.S. railroad Kansas City Southern with conditions. (Reporting by Shashwat Chauhan in Bengaluru; Editing by Shilpi Majumdar and Shailesh Kuber)
