Energy stocks boosted Canada's main stock index on Wednesday, as crude prices bounced back from historic lows on the prospect of production cuts aimed at tackling an oil glut.
The S&P/TSX Composite Index jumped 261.47 points, or 1.9%, to reach noon hour EDT at 14,201.53.
The Canadian dollar regained 0.28 cents to 70.70 cents U.S.
The largest percentage gainers on the TSX were MEG Energy, which jumped 21 cents, or 8.6%, to $2.64, and First Quantum Minerals, which rose 59 cents, or 8.2%, to $7.73.
Rogers Communications slipped 95 cents, or 1.7%, to $56.49, after the company pulled its 2020 forecast and reported lower-than-expected quarterly profit due to a drop in ad sales and weaker demand for its wireless services.
Sleep Country fell 19 cents, or 1.7%, the most on the TSX, to $11.17. The second biggest decliner was CAE Inc, down 59 cents, or 2.9%, to $20.21.
Economically speaking, Statistics Canada reported Canada’s consumer price index rose 0.9% on a year-over-year basis in March, down from a 2.2% increase in February. On a seasonally-adjusted monthly basis, the CPI declined 0.9% in March, following a 0.1% gain in February,
The agency’s new housing price index was up 0.3% in March.
ON BAYSTREET
The TSX Venture Exchange leaped 9.81 points, or 2.2%, to 447.45.
All but one of the 12 TSX subgroups were positive, with energy leading the way, up 4.9%, gold ahead 4.4%, and materials surging 4.2%.
Only communications missed the festivities, down 0.3%.
ON WALLSTREET
Stocks rose for the first time in three days on Wednesday as crude prices tried to stabilize after a record plunge.
The Dow Jones Industrials hiked 469.39 points, or 2%, to 23,488.27
The S&P 500 picked up 59.58 points, or 2.2%, to 2,796.14.
The NASDAQ Composite surged 200.27 points, or 2.4%, to 8,463.50.
A slew of companies also got a lift from solid earnings results, giving the broader market a boost. Chipotle Mexican Grill posted a better-than-expected profit, sending its stock up more than 7%. Kimberly-Clark took on 0.6%, and Snap gained 23.6%, after both companies released their latest quarterly results.
The West Texas Intermediate contract for June was up 21%, trading at $14.02 per barrel, after an earlier decline. Brent futures, meanwhile, were up 9.3% at $21.19 per barrel, recovering from a sharp overnight drop.
Oil’s historic drop led to a Dow decline of more than 1,000 points, or 5.1%, in two sessions. The S&P 500 and NASDAQ lost more than 4% each to start off the week.
Helping sentiment on Wednesday, Senate Republicans and Democrats on Tuesday passed a $484-billion coronavirus relief package that focused on small businesses, hospitals, and testing. The House could approve the bill as early as Thursday.
Prices for the 10-Year Treasury fell back, raising yields to 0.62% from Tuesday’s 0.56%. Treasury prices and yields move in opposite directions.
Oil prices pointed upward $2.71 to $14.28 U.S. a barrel.
Gold prices popped $43.60 to $1,731.40 U.S. an ounce.
