TSX ends down 3.8% at 24,335.77
Posts its biggest decline since June 2020
Tech tumbles 9.5%, with Shopify down nearly 20%
Energy falls 7.1% as oil settles 6.6% lower
Updates at market close
By Fergal Smith
April 3 (Reuters) - Canada's main index tumbled to a three-week low on Thursday, including steep declines for energy and technology shares, as the escalation of a U.S.-led trade war sparked fears of a recession globally.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended down 971.41 points, or 3.8%, at 24,335.77, its lowest closing level since March 13.
It was the biggest decline for the index since June 2020, shortly after the start of the COVID-19 crisis.
Businesses around the globe faced up to a future of higher prices, trade turmoil and reduced access to the world's largest market after U.S. President Donald Trump confirmed their worst fears by instituting broad tariffs worldwide.
"It certainly sets the stage for recession and perhaps unfortunately a fairly steep recession," said Michael Sprung, president at Sprung Investment Management.
"Today we might be seeing a bit of the first day's shock," Sprung said. "I'm not sure that we're going to see too much of a bounce-back any time soon until we get more clarity on just what some of the countermeasures that other countries might do."
Canadian Prime Minister Mark Carney announced a limited set of counter measures against U.S. tariffs while calling Trump's protectionist moves a tragedy for global trade.
The technology sector tumbled 9.5%, with e-commerce company Shopify Inc SHOP.TO down nearly 20%.
Energy was down 7.1% as the price of oil CLc1 settled 6.6% lower at $66.95 a barrel. OPEC+ agreed to a surprise increase in output which compounded already heavy losses following the tariff announcement.
The price of gold XAU= also fell and copper HGc1 posted steep declines. The materials group, which includes metal mining shares, was down 2.7%.
Heavily weighted financials lost 3.1% and industrials ended 3% lower.
Consumer staples was the only one of ten major sectors to notch gains, rising 0.9%, as supermarket chain Loblaw Companies Ltd L.TO moved to a fresh record high.
(Reporting by Fergal Smith in Toronto and Ragini Mathur and Sanchayaita Roy in Bengaluru; Editing by Sahal Muhammed and Alistair Bell)
((fergal.smith@thomsonreuters.com; +1 647 480 7446))
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