Canada's main stock index opened higher on Tuesday as a rebound in oil prices on hopes of additional production cuts from the Organization of the Petroleum Exporting Countries, powered an over 2% jump in energy shares.
The TSX Composite Index popped 144.07 points to open Tuesday at 17,523.83
The Canadian dollar regained 0.12 cents to 75.31 cents U.S.
The Federal Court of Appeal is scheduled to rule on Tuesday whether Prime Minister Justin Trudeau's government adequately consulted indigenous people when it approved last year an expansion of the Trans Mountain oil pipeline.
The company with the most at stake on Trans Mountain, Kinder Morgan Ltd., saw its stock gain 14 cents, or nearly 1%, to $14.91.
Enbridge Inc's Line 3 pipeline replacement cleared important hurdles on Monday when a Minnesota regulator endorsed a revised environmental impact statement for the project. Enbridge shares improved 65 cents to $55.24.
Canaccord Genuity upped the price target on Absolute Software to $10.50 from $10.00. Absolute shares docked six cents to $9.74.
Altacorp Capital raised the price target on Parkland Fuel to $53.00 from $51.00. Parkland shares obtained 41 cents to $46.82.
Altacorp Capital cut the price target on Superior Plus to $13.00 from $14.50. Superior shares inched up six cents to $11.57.
ON BAYSTREET
The TSX Venture Exchange sank 2.32 points, to 572.26.
Eight of the 12 TSX subgroups were positive in the first hour, as energy gushed 2.1%, industrials surged 1.3%, and financials were richer by 1.2%.
The four laggards were weighed most by gold, receding 2%, materials, down 0.7%, and real-estate backtracking 0.2%.
ON WALLSTREET
Stocks rallied on Tuesday, building on solid gains from the previous session as the market recovers from a steep selloff that was sparked by worries over the coronavirus.
The Dow Jones Industrials shot higher 418.37 points, or 1.5%, to 28,818.18,
The S&P 500 gained 42.24 points, or 1.3%, at 3,291.11.
The NASDAQ hiked 122.3 points, or 1.3%, to 9,395.86.
Stocks that have been hit by fears of the coronavirus slowing the economy bounced on Tuesday. Apple jumped 1.9%. Nvidia and Micron rose more than 2% each.
Companies directly impacted by the coronavirus, including Carnival, which confirmed on Monday that a former cruise-line passenger tested positive for the virus, rose. Carnival added 2.6%. American and United were both up by more than 4%.
Tesla, meanwhile, powered the NASDAQ with a surge of more than 17% that lifted the stock above $900. That rally follows Tesla’s best day in six years. Billionaire investor Ron Baron, a longtime Tesla bull, said Tuesday that Tesla could see revenues of $1 trillion in 10 years.
Alphabet beat earnings estimates but missing on revenues, with Google’s advertising business falling short. Alphabet’s stock fell nearly 3%.
Tuesday’s continued bounce comes after media reports said China’s central bank could cut its key lending rate as well as banks’ reserve requirement ratios in the coming weeks to support economic growth.
The report came a day after the People’s Bank of China unveiled liquidity injection measures to the tune of more than one trillion yuan. The PBOC also injected another 400 billion yuan in liquidity.
Prices for the 10-Year U.S. Treasury faltered badly raising yields to 1.60% closer to Monday’s 1.53%. Treasury prices and yields move in opposite directions.
Oil prices recovered 32 cents to $50.43 U.S. a barrel.
Gold prices plummeted $19.40 to $1,563.00 U.S. an ounce.
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