TSX Starts Recovery

Central Bank Stands Pat

Equities in Canada’s largest market rose at the open on Wednesday on higher oil prices, while investors shrugged off news of a pause in AstraZeneca's COVID-19 vaccine trials and digested an interest rate decision from the Bank of Canada.

The TSX opened Wednesday’s session up 227.36 points, or 1.4%, to 16,326.88

The Canadian dollar revived 0.24 cents to 75.77 cents U.S.

British Columbia on Tuesday ordered the closure of all nightclubs and Ontario delayed an easing of remaining restrictions imposed to fight the coronavirus pandemic, as Canada reported a spike in new COVID-19 cases.

Husky Energy said on Wednesday it would undertake a review of its West White Rose Project in the country's Atlantic region, following suspension of major construction in March due to the coronavirus outbreak.

Husky shares advanced seven cents, or 1.8%, to $3.98.

On the economic front, Canada Mortgage and Housing Corporation reported the trend in housing starts was 213,144 units in August, up from 204,597 units in July.

The Bank of Canada today maintained its target for the overnight rate at the effective lower bound of 0.25% The Bank Rate is correspondingly 0.5% and the deposit rate is 0.25%.

In its announcement, the bank said it is also continuing its quantitative easing program, with large-scale asset purchases of at least $5 billion per week of Government of Canada bonds.

ON BAYSTREET

The TSX Venture Exchange hiked seven points, or 1%, to 737.77.

For once, all 12 TSX subgroups were solidly in the green, with gold surging 3.2%, materials sprinting 3.1%, and energy recouping 1.7%.

ON WALLSTREET

Stocks ripped higher on Wednesday as tech shares clawed back some of the steep losses that pushed the NASDAQ Composite into correction territory.

The Dow Jones Industrials regained 410.6 points, or 1.5%, to 27,911.49.

The S&P 500 re-hiked 52.17 points, or 1.6%, to 3,384.01.

The NASDAQ Composite jumped 172.08 points, or 1.6%, to 11,019.77.

Shares of Tesla, which had their single worst day ever on Tuesday dropping 21%, rose 8.5% Wednesday. Apple, which lost more than 6% in the previous session, was up by 3.5%.

Those two stocks, along with Microsoft, Amazon, Alphabet and Facebook, lost $1 trillion in market value the last three days. All six were rebounding Wednesday.

The moves Wednesday came as investors shrugged off a setback with a coronavirus vaccine and disappointing earnings news. AstraZeneca shares fell 1.6% after the company said a late-stage trial of its COVID-19 vaccine candidate has been put on hold due to a suspected serious adverse reaction in a participant in the U.K.

Yogawear maker Lululemon Athletica said on Tuesday it was "cautiously optimistic" about the holiday season and forecast current-quarter adjusted profit to fall as much as 20% due to higher marketing expenses. Lululemon, which trades on the NASDAQ in New York, forfeited $32.80, or 9.4%, to $317.00

Prices for the 10-Year Treasury stayed put, maintaining yields at Tuesday’s 0.68%.

Oil prices regrouped 56 cents to $37.32 U.S. a barrel.

Gold prices gained $13.30 to $1,956.50 U.S. an ounce.