Canada's main stock index rose at the open on Tuesday, on hopes of monetary stimulus from the Bank of Canada to cushion the economic impact of the coronavirus epidemic.
The TSX Composite Index nicked 15.47 points to open Tuesday at 16,568.73.
The Canadian dollar dipped 0.23 cents to 74.81 cents U.S.
GFL Environmental on Monday raised about $1.4 billion in its initial public offering, pricing it below the target range in a conservative step to ride out market volatility in the wake of the coronavirus outbreak.
GFL shares were unchanged at $27.00 Tuesday.
CIBC cut the rating on Alaris Royalty to neutral from outperform. Alaris shares docked 35 cents, or 1.8%, to $18.81.
National Bank of Canada cut the target price on Empire Company to $37.00 from $38.00. Empire, the parent company of Sobeys, gathered 33 cents, or 1.1%, to $30.48.
CIBC cut the target price on Husky Energy to $10.50 from $12.00. Husky shares dipped three cents to $6.43.
ON BAYSTREET
The TSX Venture Exchange took on 8.4 points, or 1.6%, to 521.68.
Seven of the 12 TSX subgroups were gainers in the first hour, with utilities ahead 1%, while consumer staples and gold each forged ahead 0.8%.
The five laggards were weighed by energy, down 1.2%, consumer discretionary issues, off 0.5%, and health-care sinking 0.4%.
ON WALLSTREET
Stocks were lower on Tuesday even after the Federal Reserve slashed interest rates by half a percentage point in an emergency effort to stem slower economic growth from the coronavirus outbreak.
The Dow Jones Industrials fell 90.64 points to begin Tuesday at 26,612.68, giving up earlier gains that came in the wake of the cut.
The broader S&P 500 dropped 7.2 points, or 4.6%, to 3,083.03.
The tech-heavy NASDAQ let go of 24.83 points, to 8,927.34.
Amazon shares traded 1.3% higher while Netflix gained 0.6%. Apple shares were up 0.4% after dropping more than 1% earlier on Tuesday. Bank shares fell broadly, led by a 2.7% drop in Bank of America shares. JPMorgan Chase and Citigroup slid more than 1% each.
Markets had priced in a 0.5% rate cut for the central bank’s meeting next month. The move comes after the G-7 said in a statement earlier on Tuesday they will use policy tools to curb an economic slowdown. However, the statement contained no specific actions.
Investors have been fretting over a potential economic slowdown as the coronavirus spreads around the world. More than 89,000 coronavirus cases have been confirmed globally along with more than 3,000 deaths related to the virus.
Prices for the 10-Year U.S. Treasury gained, dropping yields to 1.10% from Monday’s 1.15%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.07 to $47.82 U.S. a barrel.
Gold prices $26.10 to $1,620.90 U.S. an ounce.
