Equities in Toronto moved skyward on Tuesday, as a rebound in oil prices powered a rally in energy shares, while broader sentiment was lifted by a fresh round of stimulus by China’s central bank to cushion the blow from a coronavirus epidemic.
The TSX Composite Index popped 143.14 points to greet noon hour at 17,522.90
The Canadian dollar regained 0.11 cents to 75.30 cents U.S.
The largest percentage gainer on the TSX was Hudbay Minerals which jumped 23 cents, or 5.9%, to $4.15, after Scotiabank upgraded its shares to “market outperform”.
Endeavour Mining fell $1.33, or 5%, the most on the TSX, to $25.45., after Burkina Faso’s mining minister said gold production probably fell slightly last year partly due to security problems and attacks targeting industrial miners. Endeavour has operations in Burkina Faso.
Canada’s export credit agency said trade confidence among the countries exporters fell to its lowest level in nearly a decade, as businesses wrestle with protectionist policies and fret about the global economy.
ON BAYSTREET
The TSX Venture Exchange sank 5.46 points, or 1.1%, to 569.12.
Eight of the 12 TSX subgroups were positive midday, as health-care stocks were haler 2.9%, while energy and industrials each pushed 1.6% higher.
The four laggards were weighed most by gold, down 3.2%, materials, sinking 1.4%, and utilities, subsiding 0.9%.
ON WALLSTREET
Stocks rallied on Tuesday, building on solid gains from the previous session as the market recovers from a steep selloff that was sparked by worries over the coronavirus.
The Dow Jones Industrials shot higher 478.99 points, or 1.7%, to 28,878.70,
The S&P 500 gained 54.74 points, or 1.7%, at 3,303.66.
The NASDAQ hiked 180.37 points, or 2%, to 9,453.77.
Stocks that have been hit by fears of the coronavirus slowing the economy bounced on Tuesday. Apple jumped 3.1%. Nvidia and Micron rose more than 2.5% each.
Companies directly impacted by the coronavirus, including Carnival, which confirmed on Monday that a former cruise-line passenger tested positive for the virus, rose. Carnival added 2.4%. American and United were both up by more than 5%.
Tesla, meanwhile, powered the NASDAQ with a surge of more than 15% that lifted the stock above $900. That rally follows Tesla’s best day in six years. Billionaire investor Ron Baron, a longtime Tesla bull, said Tuesday that Tesla could see revenues of $1 trillion in 10 years.
Microsoft and Caterpillar both rose more than 3% to contribute to the gains. The S&P 500 tech sector surged 2.7%, led higher by Apple.
Alphabet beat earnings estimates but missing on revenues, with Google’s advertising business falling short. Alphabet’s stock fell nearly 3%.
Tuesday’s continued bounce comes after media reports said China’s central bank could cut its key lending rate as well as banks’ reserve requirement ratios in the coming weeks to support economic growth.
The report came a day after the People’s Bank of China unveiled liquidity injection measures to the tune of more than one trillion yuan. The PBOC also injected another 400 billion yuan in liquidity.
Prices for the 10-Year U.S. Treasury faltered badly raising yields to 1.60% closer to Monday’s 1.53%. Treasury prices and yields move in opposite directions.
Oil prices recovered 33 cents to $50.44 U.S. a barrel.
Gold prices plummeted $25.80 to $1,556.60 U.S. an ounce.
Market Comeback Picks Up Steam