A stock market correction is considered to have occurred when equities lose at least 10 per cent of their value. An official bear market requires a pullback of at least 20 per cent.
As has been the case for much of the recent sell-off, mining and energy companies have taken the brunt of the damage.
A series of dour economic signs from all corners of the globe "are all giving equities ample reason for selling off this morning in a round of safe-haven seeking," was how Scotiabank's economics team put it in a note to clients Tuesday morning.
Shortly after trading began after the Thanksgiving long weekend, the S&P/TSX composite index shed more than 200 points to trade at 13,997. That came on the first trading day after the TSX lost almost four per cent last week.
"I think it's fear," said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier in Toronto. "There's enough things to be worried about."
The loonie was basically unchanged at just over 89 cents US.
Base metals, which are vulnerable to a global economy slowdown, fell almost 10 per cent last week alone. The energy sector has fared almost as badly, and got off to a bad start on Tuesday, with the TSX's energy subindex down three per cent as oil lost another $1.40 a barrel, down to just above $84.
But even banks, the traditional stalwart of Canadian stocks, weren't immune. Royal Bank lost almost two per cent to $78.37 and TD held up a little better, losing 1.5 per cent to $52.53
"Just grin and bear it or bear it without the grin, It doesn’t matter!" Mark Grant at Southwest Securities said of the broad sell-off in U.S. stocks, adding that he expects there could be more down days to come.
Because the calendar year started out strongly for Canadian stocks, the TSX is still up about three per cent on the year.