Canadian stocks gained as Prime Minister Justin Trudeau said his government will roll out a “significant” fiscal stimulus package Wednesday in a bid to shield Canada’s economy from tumbling into a recession.
The S&P/TSX Composite rose 2.6 per cent at 12,685.21 in Toronto. The move follows the previous session’s decrease of 9.9 per cent. Materials shares rallied alongside gold on mounting speculation that central banks including the Federal Reserve will take more action to quell market anxiety. Seven of eleven sectors rose Tuesday.
Air Canada analysts reduced their price targets after the airline withdrew its forward guidance Monday in response to the Covid-19 pandemic.
Oil deepened losses, dropping to the lowest level since 2016 as the coronavirus pandemic threatens to bring the global economy to a standstill, battering fuel demand at a time when crude supply is surging.
In Ontario, premier Doug Ford declared a state of emergency to help fight the coronavirus as the number of cases spiked.
Meanwhile down south, the Trump administration is discussing a plan that could amount to as much as USUS$1.2 trillion in spending — including direct payments of USUS$1,000 or more to Americans within two weeks — to blunt some of the economic impact of the widening coronavirus outbreak.
Commodities
Western Canada Select crude oil traded at a USUS$15 discount to West Texas Intermediate
Spot gold rose 1 per cent to USUS$1,528.81 an ounce
FX/Bonds
The Canadian dollar fell 1.3 per cent to CUSUS$1.4200 per U.S. dollar
The 10-year government bond yield rose 19.6 basis points to 0.971 per cent
