Stocks in Canada’s biggest market opened higher on Wednesday, boosted by energy stocks, as sentiment was lifted by reports of drug breakthroughs in treating the fast-spreading coronavirus.
The TSX Composite Index popped 106.61 points to kick off Wednesday at 17,619.34
The Canadian dollar lopped 0.06 cents to 75.21 cents U.S.
Endeavour Mining’s CEO says the company is not looking for other potential acquisitions after its failed offer for Centamin.
Endeavour shares dipped 51 cents, or 2%, to $25.20.
Britain's competition regulator said it plans to investigate the planned merger of gambling companies Flutter Entertainment and The Stars Group, the latter of which sank three cents to $31.85.
RBC raised the price target on CRH Medical to $6.50 from $5.50. CRH shares vaulted 31 cents, or 5.6%, to $5.82.
Scotiabank raised the rating on Hudbay Minerals to outperform from sector perform. Hudbay acquired 11 cents, or 2.7%, to $4.21.
ON BAYSTREET
The TSX Venture Exchange regained 1.15 points in Wednesday’s first hour to 574.57.
All but three of the 12 TSX subgroups were positive to begin the midweek, with energy shooting higher 2.9%, health-care up 1.3%, and consumer discretionary, better by 0.8%.
The three laggards were gold, down 0.5%, utilities, fading 0.3%, and information technology, falling 0.1%.
ON WALLSTREET
Stocks rose on Wednesday, building on the week’s already strong gains, as investors recover from a recent drop sparked by coronavirus fears.
The Dow Jones Industrials kept gains rolling Wednesday, jumping 309.62 points, or 1.1%, to 29,117.25
The S&P 500 gained 31.97 points, or 1%, at 3,329.56.
The NASDAQ hiked 64.3 points to 9,532.25.
Corporate earnings were also in focus, with a number of companies weighing the impact of the coronavirus on forecasts.
Disney on Tuesday topped first-quarter earnings expectations on both the top and bottom lines, but warned of a $175 million hit to its theme parks as a result of the coronavirus outbreak.
Meanwhile, Ford shares slid on Tuesday after the carmaker posted a fourth-quarter loss and disappointing 2020 guidance, warning of virus-related manufacturing shutdowns.
UnitedHealth acquired 2.5%, and Caterpillar rose 1.9%, to lead the Dow higher. Energy, tech and financials were up more than 1% each to lift the S&P 500.
Earlier on Wednesday, media reports said a Chinese TV media outlet had reported that a research team at Zhejiang University had found an effective drug to treat people with the new coronavirus. The reports suggested this was a reason for the move higher in stocks.
Confirmed coronavirus cases in China are near 25,000, claiming the lives of 490 people. President Donald Trump said during Tuesday’s State of the Union address that the U.S. is “working closely” with the Chinese government to contain the virus.
Stocks also rose after ADP and Moody’s Analytics said U.S. private payrolls rose by 291,000 in January. That’s the biggest monthly payrolls gain in nearly five years.
The report from ADP and Moody’s Analytics is often seen as a preview to the government’s official monthly jobs report, which is set for release Friday morning.
Prices for the 10-Year U.S. Treasury dipped, raising yields to 1.65% closer to Tuesday’s 1.6%. Treasury prices and yields move in opposite directions.
Oil prices regained $1.88 to $51.49 U.S. a barrel.
Gold prices picked up $2.60 to $1,558.10 U.S. an ounce.
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