Equities in Toronto on Tuesday climbed above a four-year low hit in the previous session, helped by a broader recovery in equities, even as concerns over the economic impact of the coronavirus outbreak weigh on markets.
The TSX Composite Index soared 441.63 points, or 3.6%, to greet noon Tuesday at 12,802.03
The Canadian dollar fell 0.65 cents at 70.72 cents U.S.
The largest percentage gainers on the TSX were Iamgold Corp, which jumped 68 cents, or 22.3%, to $3.64, and Franco-Nevada Corp , which rose $21.29, or 15.6%, to $157.24.
Hexo Corp fell 26 cents, or 26.5%, the most on the TSX, to 72 cents, after it flagged uncertainty over its ability to continue as a going concern.
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 recovering 12.31 points, or 3.4%, to 378.77.
All but two of the 12 TSX subgroups were back in the win column by midday, with gold shining 14.2% brighter, materials 12% more solid, and communications up 5.8%
The two laggards were energy, down 6.4%, and consumer discretionary, fading 4%.
ON WALLSTREET
Stocks swung wildly Tuesday as Wall Street struggled to recover from its worst day in more than 30 years amid more monetary stimulus and progress on a possible treatment for the coronavirus.
The Dow Jones Industrials regained 522.85 points, or 2.6%, to 20,711.37.
The broader S&P 500 gained 109.64 points, or 4.6%, to 2,495.73.
The NASDAQ hiked 340.71 points, or 4.9%, to 7,245.30, recovering from its worst day ever.
Amazon shares jumped more than 4% after an analyst at Wedbush added them to their “best ideas list.” Netflix climbed more than 4% as well while Apple traded 1% higher. Boeing, however, tumbled more than 15%, capping the Dow’s gains.
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.
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.
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 slumped, raising yields to 0.83% from Monday’s 0.75%. Treasury prices and yields move in opposite directions.
Oil prices dipped five cents to $28.65 U.S. a barrel.
Gold prices recovered $44.50 to $1,531 U.S. an ounce.
