Canada's main stock index rose sharply at the open on Tuesday as markets recovered slightly from a collapse in oil prices, with energy stocks jumping nearly 10%.
The TSX Composite Index regained 378.67 points, or 2.6%, to pull out of the misery of Monday’s rout at 14,892.91
The Canadian dollar lost 0.06 cents to 73.16 cents U.S.
Cenovus Energy on Tuesday announced a near 32% cut to its capital spending for the year and a temporary suspension of its crude-by-rail program as an erupting Saudi-Russia oil price war dealt a blow to the struggling Canadian oil industry.
Cenovus re-attached 17 cents, or 4.5%, to $3.99.
A senior U.S. envoy on Monday pressed Canada about Ottawa's forthcoming decision on whether to allow China's Huawei Technologies to take part in its 5G network, a move Washington opposes.
RBC cuts rating on Ensign Energy Services to sector perform from outperform. Ensign shares picked up eight cents, or 10.3%, to 86 cents.
National Bank of Canada cut the price target on Franco-Nevada to $147.50 from $150.00. Franco shares surged $3.06, or 2.1%, to $149.99.
Scotiabank raised the target price on Pretium Resources to $9.75 from $9.00. Pretium shares hiked 64 cents, or 6.6%, to $10.30.
ON BAYSTREET
The TSX Venture Exchange revived 9.51 points, or 2.1%, to 472.66.
All 12 TSX subgroups were back in positive country in the first hour, with health-care sprinting 4.1%, industrials improving 3.6%, and information technology clicking 2.9% higher.
ON WALLSTREET
Stocks rallied on Tuesday as Wall Street clawed back some of the massive losses suffered in the previous session. Bets on government intervention to stem the economic downturn from the coronavirus lifted equities.
The Dow Jones Industrials restocked 672.58 points, or 2.8%, to open at 24,523.60
The broader S&P 500 soared 74.05 points, or 2.7%, to 2,820.61
The NASDAQ re-surfaced 223.89 points, or 2.8%, to 8,174.56.
The market suffered an historic selloff on Monday, with the Dow sinking 7.8% and the S&P 500 plunging 7.6%, both posting their worst day since 2008. The Dow’s 2,013-point drop was also the biggest-ever point drop for the 30-stock average.
The deep stock rout put the record-long bull market in jeopardy. As of Monday’s close, the S&P 500 was 19% below its intraday all-time high of 3,393.52 from Feb.19. The benchmark would fall into bear market territory if it slumps 20% from its peak or more.
Exxon Mobil and Chevron led the way higher for the Dow, Exxon climbing 8.9% and Chevron adding 6.4%. Energy was the best-performing sector in the S&P 500, gaining about 6%. Marathon Oil was the biggest advancer in the broad index, trading 24% higher.
Facebook, Amazon, Apple, Netflix and Google-parent Alphabet all rose more than 1.8%. Delta garnered 2.5%, and American Airlines gained 3%, after announcing they will cut flights as the coronavirus spread dents travel demand.
President Donald Trump floated on Monday the idea of “a payroll tax cut or relief” to offset the negative impact from the coronavirus. The potential tax incentives come on top of an $8.3-billion spending package Trump signed last week.
However, administration officials told the media the White House is not close to rolling out specific proposals to deal with a coronavirus-induced economic slowdown
Prices for the 10-Year U.S. Treasury lost ground, raising yields to 0.64% from Monday’s 0.60%. Treasury prices and yields move in opposite directions.
Oil prices gained $2.36 to $33.49 U.S. a barrel.
Gold prices dropped $19.50 to $1,656.20 U.S. an ounce.
