Markets in Canada’s largest centre perked on word the Bank of Canada was joining much of its brethren the world over and easing up on interest rate in response to the economic fallout from the spread of the coronavirus
The TSX Composite Index recovered, indeed, jumped 214.08 points, or 1.3%, to kick off Wednesday at 16,637.70
The Canadian dollar regrouped 0.19 cents to 74.93 cents U.S.
Canadian National Railway’s CEO says the carrier lost capacity equivalent to 10,000 carloads, or one million tonnes of grain exports, in February due to rail blockades by protesters opposed to a pipeline project. CN shares gained $1.04 to $115.00.
JPMorgan cut the rating on Cenovus Energy to neutral from overweight. Cenovus lost a nickel to $9.43.
CIBC cut the target price on Pinnacle Renewable Energy to $10.00 from $11.00. Pinnacle hiked 31 cents, or 3.6%, to $8.89.
CIBC cuts target price on Winpak to $49.00 from $55.00. Winpak sagged $3.65, or 7.9%, to $42.55.
The Bank of Canada today lowered its target for the overnight rate by 50 basis points to 1.25%. The Bank Rate is correspondingly 1.5% and the deposit rate is 1%. Economists had expressed the opinion that a rate cut was in the offing.
ON BAYSTREET
The TSX Venture Exchange perked 6.35 points, or 1.2%, to 523.50.
The 12 TSX subgroups were on the march, primarily utilities, up 1.7%, while real-estate and consumer staple issues each climbed 1.6%.
ON WALLSTREET
Stocks surged on Wednesday as major victories from former Vice President Joe Biden during Super Tuesday sparked a massive rally within the health care sector.
The Dow Jones Industrials rebounded 507.61 points, or 2% to commence Wednesday at 26,425.02.
The broader S&P 500 gained 50.49 points, or 1.7%, to 3,053.86
The NASDAQ picked up 137.09 points, or 1.6%, to 8,821.21.
The major averages also got a boost from strong economic data. The U.S. services sector expanded at a faster-than-expected pace in February, data from the Institute for Supply Management showed. ADP and Moody’s Analytics said private payrolls jumped by 183,000 last month, topping expectations.
Biden scored key primary victories in Virginia, North Carolina, and Arkansas, giving his campaign momentum and increasing his odds of being the Democratic party’s presidential nominee.
So far, media outlets project Biden’s delegate total at 453, ahead of Vermont Sen. Bernie Sanders’ total of 373. To win the nomination, a Democratic candidate must receive support from a majority of pledged delegates — at least 1,991 of the total 3,979 pledged delegates.
Tuesday’s primary results sent health care stocks flying. UnitedHealth and Centene jumped more than 10% each.
Many investors have applauded Biden for his middle-of-the-road tact in contrast to the more-progressive policies of Sanders and Sen. Elizabeth Warren.
Prices for the 10-Year U.S. Treasury soared, dropping yields to 0.98% from Tuesday’s 1.01%. Treasury prices and yields move in opposite directions.
Oil prices gained 74 cents to $47.92 U.S. a barrel.
Gold prices faded $1.10 to $1,643.300 U.S. an ounce.
