Futures for stocks in Canada’s biggest centre rose on Tuesday after U.S. President Donald Trump and Russian President Vladimir Putin agreed to talks aimed at stabilizing energy markets, and China posted an unexpected expansion in factory activity.
The TSX Composite Index gained 350.76 points, or 2.8%, Monday to 13,038.50.
The Canadian dollar faded 0.40 cents early Tuesday to 70.18 cents U.S.
March futures increasing 0.4% early Tuesday.
Royal Bank of Canada’s CEO says the country’s biggest bank will not cut jobs in 2020 as a result of the coronavirus outbreak.
Air Canada said on Monday it will cut second-quarter capacity by 85%-90%, place about 15,200 unionized employees off duty and furlough about 1,300 managers as the coronavirus pandemic takes a toll on global travel and aviation.
TD Securities cut the target price on Aecon Group to $19.50 from $23.00
Canaccord Genuity cut the target price on BRP to $31 from $40
Scotiabank cut the target price on Quebecor to $37.00 from $38.00
CIBC cut the target price on Winpak to $4.00 from $49.00
Economically speaking, Statistics Canada reported this morning that real gross domestic product edged up 0.1% in January, with 12 of the 20 sectors increasing.
The agency’s Industrial Product Price Index was down 0.5% in February, driven primarily by lower prices for refined petroleum products.
The Raw Materials Price Index fell 4.7%, mostly due to lower prices for crude oil.
ON BAYSTREET
The TSX Venture Exchange fell 2.03 points Monday to 386.55.
ON WALLSTREET
Stock futures dipped in choppy trading early Tuesday morning, as the market tries to make back some of the deep losses triggered by the coronavirus pandemic.
Futures for Dow Jones Industrials dropped 195 points, or 0.9%, early Tuesday to 21,972.
Futures for the S&P 500 fell 25.75 points, or 1%, at 2,585.50
Futures for the NASDAQ Composite backpedaled 44.25 points, on 0.6%, to 7,810.50.
The Dow jumped nearly 700 points on Monday led by an 8% pop in Johnson & Johnson after it announced a vaccine candidate for the coronavirus. The S&P 500 rallied 3.4%.
The Dow is now up 20% from its coronavirus selloff low reached on March 23 while the S&P 500 has risen more than 17% from those levels.
Despite the recent comeback, the market is on pace to end the month and quarter with big losses. The Dow is down 12% in March, on pace for its worst month since October 2008.
The S&P 500 is down 11% in March, also on pace for its worst month since 2008.The Dow is down 21.8% this quarter, on track for its worst quarter since 1987 and its worst first quarter ever.
The S&P 500 is off 18.7% this quarter, on track for its worst quarter since 2008 and its worst first quarter since 1938.
Investors embraced a more realistic government approach to contain the pandemic. President Donald Trump extended the timeline for social distancing guidelines to April 30, which many believe will reduce economic damage in the long run.
Investors continued to grapple with the worsening outbreak in the U.S. as the confirmed cases rose to more than 153,200, according to data from Johns Hopkins University. The U.S. has also officially become the country most affected. Trump said Sunday he hopes the country will “be well on our way to recovery” by June 1.
Overseas, in Japan, the Nikkei 225 slipped 0.9%, while Hong Kong, the Hang Seng Index gained 1.9%.
Oil prices increased $1.15 to $21.24 U.S. a barrel.
Gold prices flopped $24.50 to $1,618.70 U.S. an ounce.
Dow to Conclude Worst Quarter Ever
