Canada's main stock index jumped on Tuesday, as hopes of further stimulus measures from major economies, after U.S. Federal Reserve offered unlimited bond buying, helped shore up demand for riskier assets.
The TSX Composite Index zoomed 920.12 points, or 8.2%, to move into noon hour at 12,148.61
The Canadian dollar faded 0.04 cents at 69.02 cents U.S.
Financials led the parade, with Manulife climbing $1.81, or 14%, to $14.78, while Power Corporation surged $2.40, or 13.6%, to $20.02.
Consumer stocks also had a banner morning, with Magna International popping $5.83, or 16.5%, to $41.14, and Canada Goose Holdings jumping $3.32, or 14.3%, to $26.57.
The most heavily traded shares by volume were those of Bombardier, which pulled its 2020 outlook and said it would halt all non-essential work at most of its Canada-based operations until April 26 to help slow the spread of the coronavirus pandemic. Bombardier added 2.75 cents, or 6.4%, to $45.75 cents.
ON BAYSTREET
The TSX Venture Exchange regained 23.85 points, or 6.8%, to 375.04.
All 12 TSX subgroups had gained by midday, with financials sprinting 10%, consumer discretionary stocks improving 9.4%, and utilities 9.3% stronger.
ON WALLSTREET
Stocks rebounded aggressively from a three-year low on Tuesday as investors hoped U.S. lawmakers were close to an agreement on a stimulus bill to rescue the economy from the damage caused by the coronavirus.
The Dow Jones Industrials recovered 1,545.51 points, or 8.3%, to 20,137.44.
The broader S&P 500 regained 161.19 points, or 7.2%, to 2,398.59. The Dow and S&P 500 closed at their lowest levels since late-2016 on Monday.
The NASDAQ hiked 434.7 points, or 6.3%, to 7,297.62.
Chevron gained more than 20% to lead the Dow higher. Boeing, McDonald’s and Disney also rallied more than 10%. Energy was the best-performing sector in the S&P 500, soaring 11.1%, while industrials and financials each jumped more than 9%.
Stocks hardest hit by the shutdowns resulting from the coronavirus led the gains in pre-market trading Tuesday. Shares of Wynn and MGM Resorts were both up more than 13%. Delta Air Lines jumped more than 19%. General Motors shares, meanwhile, climbed nearly 11% after the automaker announced it will draw about $16 billion from its credit facilities to mitigate the coronavirus’ impact.
House Speaker Nancy Pelosi told the media there is “real optimism” in Congress over a stimulus deal being reached in the next few hours. Senator Chuck Schumer and Treasury Secretary Steven Mnuchin had said they hoped to have a deal by Tuesday morning.
Markets are also getting support from the Federal Reserve, which said Monday it would embark on an open-ended asset purchase program
Prices for the 10-Year U.S. Treasury lost ground, raising yields to 0.86% from Monday’s 0.79%. Treasury prices and yields move in opposite directions.
Oil prices added 14 cents to $23.50 U.S. a barrel.
Gold prices increased $84.00 to $1,651.60 U.S. an ounce.
Market Comeback Gains Steam
