Stock markets tried to prove Friday there was some spark left in them, after the effects of lower oil prices and fears of a worldwide pandemic drastically reduced much of their strength.
The TSX Composite Index jumped 1,207.88 points, or 9.7%, to finish Friday and a turbulent week at 13,716.33. The decline on the week was a staggering 2,460 points, or 15.2%.
The Canadian dollar poked ahead 0.57 cents at 72.27 cents U.S.
Financials had a banner day, after so many negative ones, with CIBC popping $13.03, or 18.3%, to $84.00, while rival Scotiabank gathered $8.50, or 16.8%, to $59.16.
Among communications concerns, Cogeco Communications added $12.07, or 13.1%, to $104.06, while Rogers moved higher $6.92, or 13.3%, to $58.77.
In consumer staples, Saputo hiked $3.60, or 12.2%, to $33.17, while Weston vaulted $10.11, or 11.8%, to $96.09.
Gold faded, as Alamos Gold lost $1.23, or 18.5%, to $5.43, while Torex Gold Resources slumped $2.30, or 17.1%, to $11.16/
Among materials, First Majestic Silver slouched 89 cents, or 11.4%, to $6.94, while Pan American Silver doffed $3.82, or 16.6%, to $19.17.
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.
Then, at the end of Friday’s session, Bank of Canada Governor Stephen Poloz announced another half-percentage drop in the central bank’s overnight lending rate to 0.75%.
ON BAYSTREET
The TSX Venture Exchange dropped 1.54 points to 391.12, to add to a weekly loss of 115 points, or 22.8%.
All but two of the 12 TSX subgroups were positive by the closing bell, financials leading the pack, up 13.3%, while communications climbed 10.2%, consumer staples ahead 9.6%,
The two laggards were gold, down 9.6%, and materials, shedding 4.6%.
ON WALLSTREET
Stocks rose sharply in volatile trading Friday as Wall Street rebounded from the sharp losses suffered in the previous session — the worst since the "Black Monday" market crash in 1987.
The Dow Jones Industrials soared 1,985 points, or 9.4%, to 23,185.62, limiting a still-sizable weekly loss to 10.4%. Friday marked the Dow’s biggest-ever point gain.
The broader S&P 500 hurtled higher 230.38 points, or 9.3%, to 2,711.02. The index fell short of last week’s close by 8.8%
The NASDAQ restocked 673.07 points, or 9.4%, to 7,874.88, but landed 8.2% lower on the week. Still, the averages posted their biggest one-day gain since October 2008.
Equities rallied to their session highs Friday after President Donald Trump also said 50,000 new coronavirus tests will be available next week. Trump also said he asked the Energy Department to purchase oil for the U.S. strategic petroleum reserve, boosting oil prices.
Apple and Facebook jumped more than 10% each to lead the so-called FAANG stocks higher. Google-parent Alphabet gained 9.3% while Amazon and Netflix both rose more than 6%.
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 sagged, raising yields to 0.98% from Thursday’s 0.89%. Treasury prices and yields move in opposite directions.
Oil prices regained $1.75 cents to $33.25 U.S. a barrel.
Gold prices dropped $69.30 to $1,521.00 U.S. an ounce.
