Equity markets in Canada’s largest centre rose sharply 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 rocketed 780.67 points, or 7%, to open for business Tuesday at 12,009.16
The Canadian dollar gained 0.12 cents at 69.19 cents U.S.
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.
Bombardier rumbled 2.8 cents, or 6.4%, higher to 45.75 cents.
Manulife Financial’s CEO said most of the copmany’s employees in China have returned to work in its offices, as the spread of the new coronavirus slows.
Manulife shares chugged ahead $1.03, or 7.9%, to $14.00.
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.
Suncor gathered 84 cents, or 5.5%, to $16.25.
Altacorp Capital cut the target price on Cardiol Therapeutics to $8.15 from $9.00. Cardiol shares spiked 21 cents, or 9.4%, to $2.45.
National Bank of Canada cut the target price on Gildan Activewear to $23.00 from $42.00. Gildan gained 25 cents, or 1.6%, to $15.70.
National also cut the target price on Rogers Sugar to $3.75 from $4.50. Rogers Sugar shares raced higher 22 cents, or 5.7%, to $4.09.
ON BAYSTREET
The TSX Venture Exchange re-claimed 19.96 points, or 5.7%, to 371.15.
All 12 TSX subgroups were in the green in the first hour, with gold shining 9%, real-estate mightier by 8.8%, and utilities 7.9% to the good.
ON WALLSTREET
Stocks jumped on Tuesday as investors hoped U.S. lawmakers were close to an agreement on a stimulus bill to rescue the economy from the coronavirus scare.
The Dow Jones Industrials recovered 1,223.17 points, or 6.6%, to 18,815.10, emerging from Monday’s three-year low.
The broader S&P 500 regained 134.17 points, or 6%, to 2,271.57
The NASDAQ opened the day up 368.82 points, or 5.4%, to 7,227.48.
Boeing gained more than 12% to lead the Dow higher. Chevron and United Technologies also rallied more than 10%. Energy was the best-performing sector in the S&P 500, soaring 9.3%, while industrials jumped 7.2%.
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 both up more than 10%. Delta Air Lines jumped more than 14%. General Motors shares, meanwhile, climbed nearly 6% after the automaker announced it will keep its dividend.
House Speaker Nancy Pelosi told the media there is "real optimism" in Congress over a stimulus deal being reached in the next few hours. Senator Chuck Schumer and Treasury Secretary Steven Mnuchin had said they hoped to have a deal by Tuesday morning.
Markets are also getting support from the Federal Reserve, which said Monday it would embark on an open-ended asset purchase program
Prices for the 10-Year U.S. Treasury lost ground, raising yields to 0.85% from Monday’s 0.79%. Treasury prices and yields move in opposite directions.
Oil prices added 41 cents to $23.77 U.S. a barrel.
Gold prices increased $101.30 to $1,561.30 U.S. an ounce.
