Canada's main stock index gave up early gains, and ventured back into the red on Tuesday after hitting a four-year low in the previous session, tracking a broader recovery in equity markets following several sessions of losses due to concerns over the coronavirus outbreak.
The TSX Composite Index dropped 16.84 points to open Tuesday at 12,343.56
The Canadian dollar fell 0.63 cents at 70.74 cents U.S.
Canaccord Genuity cut the price target on Air Canada to $30.00 from $40.00. Air Canada shares descended $2.23, or 12.2%, to $16.00.
Scotiabank ups rating on Dundee Precious Metals to sector outperform from sector perform. Dundee shares gained 33 cents, or 8%, to $4.45.
Jefferies cuts the rating on Green Organic Dutchman Holdings to underperform from buy
On the economic calendar, Statistics Canada said manufacturing sales were down 0.2% to $56.1 billion in January, the fifth consecutive monthly decline.
Moreover, the agency said, foreign investors acquired $17.0 billion of Canadian securities in January.
Meanwhile, Canadian investors reduced their holdings of foreign securities by $9.1 billion, following acquisitions of $13.8 billion in December 2019
ON BAYSTREET
The TSX Venture Exchange doffed 2.21 points to 364.25.
Seven of the 12 TSX subgroups fell in the first hour, with consumer discretionary stocks down 4.2%, health-care off 3.3%, and real-estate sliding 2.7%.
The five gainers did so emphatically, with gold shining 5.2%, while materials and consumer staples each climbed 4.2%.
ON WALLSTREET
Stocks swung wildly Tuesday as Wall Street struggled to to recover from its worst day in more than 30 years despite signs of potential further stimulus and progress on a possible treatment for the coronavirus.
The Dow Jones Industrials regained 25.49 points to 20,214.01.
The broader S&P 500 gained 34.93 points, or 1.5%, to 2,429.13.
The NASDAQ hiked 75.45 points, or 1.1%, to 6,983.97, recovering from its worst day ever.
Tuesday’s moves came after Politico and The Washington Post reported that Treasury Secretary Steven Mnuchin will ask congressional lawmakers for a stimulus package of $850 billion or more to help the U.S. economy grapple with the impact of the coronavirus.
Biotech giant Regeneron, meanwhile, said Tuesday morning that it’s aiming to have doses of a potential drug for COVID-19 ready to start human clinical trials by early summer. The announcement, which represents a marked acceleration in the company’s drug timeline, sparked a 9% rally in the company’s equity.
At least 4,281 cases have been confirmed in the U.S. along with more than 70 deaths, according to data from Johns Hopkins University. President Donald Trump also said the crisis could stretch into August, adding the administration may look at locking down “certain areas.”
Prices for the 10-Year U.S. Treasury was flat, raising yields to 0.76% from Monday’s 0.75%. Treasury prices and yields move in opposite directions.
Oil prices poked upward 15 cents to $28.85 U.S. a barrel.
Gold prices recovered $15.90 to $1,502.40 U.S. an ounce.
