Canada's main stock market rallied on Friday as hopes rose for stimulus to ease the economic impact of the coronavirus outbreak and a crash in oil prices, but the market was still on track for its worst week on record as economists forecast a recession.
The TSX Composite Index came off its highs of the morning, but maintained its plus status by 185.05 points, or 1.5%, to reach noon Friday at 12,693.50
The Canadian dollar doffed 0.04 cents at 71.68 cents U.S.
For the week, the index was on track to fall about 19%, its biggest drop going back to July 1979.
Prime Minister Justin Trudeau will be in isolation for two weeks after his wife, Sophie, tested positive for coronavirus on Thursday, and the outbreak prompted the province of Ontario to shutter schools to limit the spread.
Hopes of a coordinated stimulus package from world governments boosted stocks globally after several sessions of sustained, heavy losses on expectations of a global slowdown that could be prolonged.
ON BAYSTREET
The TSX Venture Exchange dropped 3.75 points to 388.91.
The 12 TSX subgroups were evenly divided, with financials soaring 5.2%, communications improving 2.3%, and consumer staples better by 1.9%.
The half-dozen laggards were weighed most by gold, down 6.1%, materials, off 5%, and health-care, off 1.6%.
ON WALLSTREET
Stocks gave up most of their earlier rally on Friday as Wall Street tried to rebound from the sharp losses suffered in the previous session — the worst since the “Black Monday” market crash in 1987.
The Dow Jones Industrials came off its high, but kept gains of 451.22 points, or 2.1%, to 21,651.84. At one point, the Dow was up more than 1,300 points and on pace for its biggest one-day gain since March 2009.
The broader S&P 500 stayed green 55.53 points, or 2.2%, to 2,553.85.
The NASDAQ restocked 148.05 points, or 2.1%, to 7,350.97. Both indexes were up more than 6% at one point. Investors awaited a news conference from President Donald Trump on the coronavirus outbreak.
Apple shares jumped 5.3% after an analyst at Wells Fargo upgraded the tech giant to overweight from equal weight, citing a “compelling risk/reward” outlook.
Airline stocks rallied, with Delta gaining altitude of 10% and United picking up 5%. American traded higher by 8%.
Stocks got a boost after House Speaker Nancy Pelosi said U.S. lawmakers and the White House were close to a deal on economic relief amid the coronavirus outbreak. “We’ve resolved most of our differences,” Pelosi told reporters Thursday evening, noting it’s about “testing, testing, testing.”
Treasury Secretary Steven Mnuchin also told the media the White House and Congress were nearing a deal. “The president is absolutely committed that this will be an entire government effort, that we will be working with the House and Senate,” Mnuchin said.
Investors were bombarded with a slew of negative headlines about the fast-spreading coronavirus. The NCAA has canceled its March Madness basketball tournaments, a day after the National Basketball Association suspended the remainder of its season indefinitely. New York Mayor Bill de Blasio declared a state of emergency, while new restrictions for large events and businesses were imposed.
Prices for the 10-Year U.S. Treasury let go of gains, raising yields to 0.93% from Thursday’s 0.89%. Treasury prices and yields move in opposite directions.
Oil prices slipped 0.04 cents to $31.46 U.S. a barrel.
Gold prices dropped $66.70 to $1,523.60 U.S. an ounce.
