Equities in Canada’s largest market rose in early trade on Wednesday, lifted by energy stocks as oil prices bounced from historic lows on prospects of production cuts aimed at tackling an oil glut.
The S&P/TSX Composite Index recovered 231.59 points, or 1.7%, to kick off the midweek session at 14,171.65.
The Canadian dollar regained 0.33 cents to 70.75 cents U.S.
Canadian Pacific Railway said on Tuesday it expects full-year adjusted earnings to be flat due to the coronavirus pandemic and warned of rapidly slowing crude volumes. CP shares hiked $7.34, or 2.4%, to $312.84.
Canaccord Genuity cut the rating on Canwel Building Materials Group to sell from hold. Canwel shares dipped a dime, or 3.1%, to $3.12.
Canaccord Genuity cut the rating on Hardwoods Distribution to hold from buy. Hardwoods shares docked four cents to $10.70.
Citigroup cut the rating on Teck Resources to neutral from buy. Teck shares vaulted 48 cents, or 4.8%, to $10.51.
Economically speaking, Statistics Canada reported Canada’s consumer price index rose 0.9% on a year-over-year basis in March, down from a 2.2% increase in February. On a seasonally-adjusted monthly basis, the CPI declined 0.9% in March, following a 0.1% gain in February,
The agency’s new housing price index was up 0.3% in March.
ON BAYSTREET
The TSX Venture Exchange re-stocked 6.99 points, or 1.6%, to 444.93.
All 12 TSX subgroups were positive, with energy leading the way, up 6%, gold ahead 3.7%, and materials surging 3.4%.
ON WALLSTREET
Stocks rose for the first time in three days on Wednesday as crude prices tried to stabilize after a record plunge.
The Dow Jones Industrials recovered handsomely, gaining 414.5 points, or 1.8%, to 23,433.38
The S&P 500 picked up 45.05 points, or 1.7%, to 2,781.61.
The NASDAQ Composite surged 161.33 points, or 1.7%, to 8,424.56.
A slew of companies also got a lift from solid earnings results, giving the broader market a boost. Chipotle Mexican Grill posted a better-than-expected profit, sending its stock up more than 7%. Kimberly-Clark advanced 0.6%, and Snap gained 23.6%, after both companies released their latest quarterly results.
The West Texas Intermediate contract for June was up 21%, trading at $14.02 per barrel, after an earlier decline. Brent futures, meanwhile, were up 9.3% at $21.19 per barrel, recovering from a sharp overnight drop.
Oil’s historic drop led to a Dow decline of more than 1,000 points, or 5.1%, in two sessions. The S&P 500 and NASDAQ lost more than 4% each to start off the week.
Helping sentiment on Wednesday, Senate Republicans and Democrats on Tuesday passed a $484 billion coronavirus relief package that focused on small businesses, hospitals, and testing. The House could approve the bill as early as Thursday.
Prices for the 10-Year Treasury fell back, raising yields to 0.59% from Tuesday’s 0.56%. Treasury prices and yields move in opposite directions.
Oil prices pointed upward $3.27 to $14.84 U.S. a barrel.
Gold prices popped $39.50 to $1,727.30 U.S. an ounce.
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