Canada's main stock index rose on Tuesday, steered by energy and gold stocks as oil prices gained on Saudi Arabia's unexpected commitment to extend production cuts in June to help drain a supply glut built up due the coronavirus crisis.
The S&P/TSX Composite Index had taken on 42.8 points to reach noon EDT Tuesday to 15,146.02.
The Canadian dollar recovered 0.13 cents to 71.48 cents U.S.
Among the largest percentage gainers on the TSX was Real Matters which jumped 57 cents, or 2.6%, to $22.14, and Canadian Natural Resources, which rose 76 cents, or 3.3%, to $23.67.
Aurora Cannabis fell 99 cents, or 9.5%, the most on the TSX, to $9.46, after two brokerages lowered their price target on the stock.
The second-biggest decliner was fleet management company Element Fleet Management down 52 cents, or 5.3%, to $9.25, after multiple brokerages cut price target on the stock.
Global alarm was sounded on Monday over a potential second wave of coronavirus cases after Germany, relatively successful in slowing the outbreak, reported that infections had accelerated again after the first tentative steps to ease the lockdown in the country.
ON BAYSTREET
The TSX Venture Exchange vaulted 6.6 points, or 1.3%, to 501.80
All but three of the 12 TSX subgroups reached midday Tuesday in plus territory, with gold triumphing 2.3%, energy jumping 1.8%, and materials hiking 1.7%.
The three laggards were real-estate, off 2.1 %, consumer staples, faltering 0.4%, and financials, sliding 0.3%.
ON WALLSTREET
Stocks struggled in early trading Tuesday as investors evaluated the latest attempts to reopen the economy.
The Dow Jones Industrials came off its highs of the morning, but stayed positive 18.64 points to 24,240.63.
The S&P 500 sank 5.56 points to 2,924.66.
The tech-heavy index NASDAQ forged ahead 8.05 points to 9,200.63. The tech-heavy NASDAQ entered the session riding a six-session winning streak.
Dr. Anthony Fauci, who heads the National Institute of Allergy and Infectious Diseases, and other health officials testified before the Senate Health Committee to discuss reopening the economy. Fauci noted a vaccine will be essential in stopping the coronavirus spread, but warned it will be a while before a usable one is available.
New York Gov. Andrew Cuomo said Monday the state’s restrictions on certain low-risk businesses and activities will lift on Friday. The World Health Organization said several countries that eased coronavirus restrictions, including China, have seen increases in the number of positive COVID-19 cases.
Despite the risks, stocks that would benefit most from reopening the economy led gains Tuesday. Mall owner Simon Property Group, Marriott and Wynn Resorts were all higher.
Shares of Apple were 1% higher as tech stocks extended their winning ways.
Investors continued to pile into tech firms whose businesses proved to have the most resilient in the age of coronavirus crisis. Shares of Amazon and Netflix both soared more than 30% this year, while Microsoft gained 18%. Chipmaker Nvidia hit a fresh all-time high on
Tuesday, bringing its 2020 gains to 38%.
Prices for the 10-Year Treasury regained lost ground, lowering yields to Monday’s 0.71%. Treasury prices and yields move in opposite directions.
Oil prices picked up $1.10 to $25.24 U.S. a barrel.
Gold prices increased $15.20 to $1,713.20 U.S. an ounce.
