Futures for equities in this country rose on Tuesday as investors were encouraged after the U.S. Federal Reserve took aggressive measures to prop up the economy, a move which also boosted the price of oil.
The TSX Composite Index plummeted 623.32 points, or 5.3%, to close Monday at 11,228.49
The Canadian dollar eased 0.10 cents early Tuesday to 68.97 cents U.S.
March futures, however, gained 5% early Tuesday.
Bombardier will suspend Canadian production of its corporate jets to comply with restrictions imposed by provincial governments aimed at curbing the spread of the coronavirus, a source familiar with the matter said on Monday.
Manulife Financial’s CEO said most of the company’s employees in China have returned to work in its offices, as the spread of the new coronavirus slows.
Suncor Energy on Monday cut its 2020 production outlook and suspended share repurchases for the year following the decline in crude oil prices and the economic impact of the coronavirus outbreak.
Altacorp Capital cut the target price on Cardiol Therapeutics to $8.15 from $9.00
National Bank of Canada cut the target price on Gildan Activewear to $23.00 from $42.00
National also cut the target price on Rogers Sugar to $3.75 from $4.50
ON BAYSTREET
The TSX Venture Exchange gave back 5.35 points, or 1.5% Monday, to 351.19.
ON WALLSTREET
Futures contracts tied to the major U.S. stock indexes surged in early trading Tuesday on hopes an agreement on a stimulus bill to rescue the economy from the coronavirus was close.
Futures for Dow Jones Industrials vaulted 837 points, or 4.5%, early Tuesday to 19,334.
Futures for the S&P 500 hiked 101.75 points, or 4.7%, at 2,322.25
Futures for the NASDAQ Composite spiked 299.25 points, on 4.3%, to 7,283.75.
Senator Charles Schumer and Treasury Secretary Steven Mnuchin were close to a deal on a $2-trillion stimulus bill, according to reports, which cited a conference call Schumer had Monday evening with Democratic leaders. Negotiations on the bill were set to continue Tuesday morning.
The futures contracts cannot trade once they exceed certain extreme bands, according to rules of the exchange to curb volatility. No activity can take place outside of those bands, in this case, up 5%. During this historic market plunge this month, the futures have often been halted for being “limit down,” off by more than 5%
Stocks hardest hit by the shutdowns resulting from the coronavirus led the gains in pre-market trading Tuesday. Shares of Wynn and MGM Resorts were up more than 11%. Airlines like Delta jumped more than 10%.
Democrats have criticized the $500 billion fund that the Republican proposal sets aside for distressed businesses, calling it a bailout fund “with no strings attached.”
The futures’ gains also came as President Donald Trump signaled he was eager to reopen the economy, despite concerns of public health officials.
Overseas, in Japan, the Nikkei 225 recovered 7.1%, while Hong Kong, the Hang Seng Index regained 4.5%.
Oil prices acquired 54 cents to $23.90 U.S. a barrel.
Gold prices surged $102.70 to $1,670.30 U.S. an ounce.
