Canada's main stock index rose on Wednesday, lifted by gains in oil and metal stocks, meanwhile Bank of Canada cut interest rate to mitigate the economic fallout from the coronavirus outbreak.
The TSX Composite Index maintained its positive stance staying up 205.42 points, or 1.3%, to reach noon hour Wednesday at 16,629.04
The Canadian dollar stumbled 0.20 cents to 74.54 cents U.S.
The largest percentage gainers on the TSX were Semafo, which jumped 16 cents, or 5.6%, to $3.03, and Freehold Royalties, which rose 33 cents, or 5.5%, to $6.34.
Winpak fell $3.94, or 8.5%, the most on the TSX, to $42.26, after its fourth-quarter earnings missed estimates. The second biggest decliner was MAG Silver Corp, down 65 cents, or 5%, to $12.25, after BMO cut the stock's target price.
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 6.81 points, or 1.3%, to 523.96.
All but two of the 12 TSX subgroups remained in the green, as information technology surged 2.2%, real-estate zoomed 2.1%, and health-care, haler by 1.9%.
Only gold, down 1.8%, and materials, tailing off 0.1%, missed the festivities.
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 leaped 482.15 points, or 1.9%, to break for lunch Wednesday at 26,399.56.
The broader S&P 500 gained 47.98 points, or 1.6%, to 3,051.15
The NASDAQ picked up 119.42 points, or 1.4%, to 8,803.51.
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 0.96% from Tuesday’s 1.01%. Treasury prices and yields move in opposite directions.
Oil prices retreated 32 cents to $46.86 U.S. a barrel.
Gold prices faded one dollar to $1,643.40 U.S. an ounce.
