Stocks Recover Lost Ground

Ivanhoe, Automation Tooling in Focus

Equities in Canada’s largest market rose midday 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 added 239.84 points, or 1.5%, to approach noon at 16,339.36.

The Canadian dollar revived 0.43 cents to 75.96 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.

The largest percentage gainers on the TSX were Ivanhoe Mines which jumped 45 cents, or 8.2% to $5.90, after brokerages TD Securities and Canaccord raised their price targets on its stock, while Pretium Resources rose 72 cents, or 4.3%, to $17.31

ATS Automation Tooling Systems fell $1.07, or 5.8%, the most on the TSX, to $17.50, after announcing a reorganization plan that included workforce reductions in Europe and Asia to help mitigate the expected impact of a downturn in its transportation markets brought on by the COVID-19 pandemic.

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.

Elsewhere, the Bank of Canada 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 6.89 points to 737.66.

All 12 TSX subgroups stayed solidly in the green, with gold and materials each jumping 2.4%, while consumer staples increased 2.1%.

ON WALLSTREET

Stocks south of the border 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 510.96 points, or 1.9%, to 28,011.85.

The S&P 500 pointed upward 69.23 points, or 2.1%, to 3,401.07.

The NASDAQ Composite popped 277.92 points, or 2.6%, to 11,125.61.

Shares of Tesla, which had their single worst day ever on Tuesday dropping 21%, rose 6.7% Wednesday. Apple, which lost more than 6% in the previous session, was up by 5%.

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

The moves Wednesday came as investors shrugged off a setback with a coronavirus vaccine and disappointing earnings news.

AstraZeneca said 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. However, the Financial Times later reported the trial might resume next week, lifting AstraZeneca shares off their session lows.

Shares of athletic retailer Lululemon fell 8.1% and messaging platform Slack fell 14.3%. Those losses came despite both companies reporting better-than-expected earnings.

Prices for the 10-Year Treasury lost ground, pushing yields up 0.7% from Tuesday’s 0.68%. Treasury Prices and yields move in opposite directions.

Oil prices regrouped $1.40 to $38.16 U.S. a barrel.

Gold prices gained $10.30 to $1,953.50 U.S. an ounce.