Triple-Digit Gains Enjoyed by TSX

Kinross, Wheaton in Focus

Stocks in Toronto raised themselves from a prone position by Wednesday’s closing bell, much of impetus coming from strength in resource and consumer staple stocks.

The TSX rocketed 284.08 points, or 1.8%, to end Wednesday at 16,383.60.

The Canadian dollar revived 0.48 cents to 76.01 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.

Gold stocks were triumphant, as Kinross Gold surged 70 cents, or 6.2%, to $12.02, while Centerra Gold sprang 91 cents, or 5.7%, to $17.01.

In other resource stocks, Wheaton Precious Metals soared $3.51, or 5.1%, to $72.17, while Ivanhoe Mines hiked 44 cents, or 8.1%, to $5.89.

In consumer staples, Alimentation Couche-Tard heightened $2.23, or 5.1%, to $46.38, while North West Company hiked $1.01, or 3.5%, to $29.51.

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 took flight 12.49 points, or 1.7%, to 743.26.

All 12 TSX subgroups were positive, with gold jumping 4.1%, materials progressing 3.8%%, while consumer staples increased 3.1%.

ON WALLSTREET

Stocks ripped higher on Wednesday as tech shares posted their best day in about four months, clawing back some of the steep losses that knocked the S&P 500 and NASDAQ Composite back below their record highs.

The Dow Jones Industrials regained 439.58 points, or 1.6%, to 27,940.47.

The S&P 500 pointed upward 67.12 points, or 2%, to 3,398.96. It was the S&P 500's best day since June 5, when it popped 2.6%.

The NASDAQ Composite popped 293.87 points, or 2.7%, to 11,151.56.

Wall Street was coming off its worst three-day stretch in months. Over the previous three sessions, the S&P 500 lost nearly 7%. The Nasdaq sold off by more than 10% over the previous three days amid a rotation out of tech and into more beaten-down names. Both benchmarks reached all-time highs in the prior week.

Shares of Tesla, which had their single worst day ever on Tuesday dropping 21%, ended Wednesday’s session up more than 10% after a late-day surge. Apple, which lost more than 6% in the previous session, was up by 4%.

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

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 $1.22 to $37.98 U.S. a barrel.

Gold prices gained $13.40 to $1,956.60 U.S. an ounce.