Equities in Toronto forsook their downward ways late Tuesday morning and gained ground, as oil prices rose on analysts' expectations of renewed COVID-19 curbs having a limited effect on fuel demand.
The TSX remained in positive territory 50.12 points as noon approached on Tuesday to 16,031.89.
The Canadian dollar fell 0.18 cents to 75 cents U.S.
Inter Pipeline said on Tuesday it will sell a major portion of its European bulk liquid storage business to Spain-based CLH Group for the equivalent of $537.73 million U.S. Shares in Inter gathered 27 cents, or 2%, to $13.54.
Another of the big gainers proved to be Gildan Activewear, which rose 61 cents, or 2.4%, to $26.06.
Ballard Power Systems fell 47 cents, or 2.2%, the most on the TSX, to $21.24, while the second biggest decliner was Trillium Therapeutics, down 75 cents, or 3.7%, to $19.40.
Premier John Horgan says British Columbia will hold an election on Saturday, Oct. 24, making it the largest province in Canada so far to hold a vote during the pandemic.
Oil prices rose as analysts took the view renewed lockdown restrictions would have only a limited impact on fuel demand, partly reversing a steep drop in prices the previous day.
Analysts are saying Bank of Canada Governor Tiff Macklem is likely of the opinion that inflation will run above target as he seeks an economic recovery which raises prospects for everyone, making Canada's central bank just as dovish as the U.S. Federal Reserve.
ON BAYSTREET
The TSX Venture Exchange leaned lower 1.11 points to 718.75.
Eight of the 12 TSX subgroups had turned positive, with consumer staples growing 1.5%, while communications and energy each up 0.9%.
The four laggards were led by health-care, sliding 1.7%, information technology, down 0.6%, and gold, dulling in price 0.1%.
ON WALLSTREET
Stocks fell back a bit on Tuesday, after recovering some of the steep losses from the previous session as shares of Big Tech advanced.
The Dow Jones Industrial Average shed early gains and fell 121.81 points to 27,025.89.
The S&P 500 also fell 1.97 points to 3,279.25.
The NASDAQ faded from initial gains, but remained ahead 6.62 points to greet noon at 10,785.54.
The Dow has dropped 4.5% and the S&P 500 has fallen 6.3% this month, while the NASDAQ has dropped 8.4% as investors dumped high-flying tech giants.
Amazon shares rose 3.2% after a Bernstein analyst upgraded the e-commerce giant to buy from hold, noting the recent pullback offers an attractive "entry point" for investors. Facebook, Apple and Microsoft were also higher.
Shares of Tesla dropped 3.4% after CEO Elon Musk said in a tweet that the electric carmaker’s “Battery Day” event would not reach “serious high-volume production” until 2022, which disappointed investors and analysts.
Traders also digested remarks by Federal Reserve Chairman Jerome Powell, who reiterated the central bank will support the economy “for as long as it takes.”
Gains were kept in check, however, after U.K. Prime Minister Boris Johnson announced further restrictions to curb the spread of the virus. He noted the country was at a “perilous turning point” and ordered bars and restaurants to close between 10 p.m. and 5 a.m. The restrictions also expand on the list of places requiring people wear a mask.
Prices for the 10-Year Treasury were static, keeping yields at Monday’s 0.67%.
Oil prices added 17 cents to $39.48 U.S. a barrel.
Gold prices dropped $4.50 to $1,906.10 U.S. an ounce.
