Investors finally enjoyed the feel of upward momentum Monday, after a week-plus of devastating losses, brought on by jitters over the spread of the coronavirus worldwide. Folks buying investment vehicles in Toronto particularly poured that positive energy into utilities and communication stocks.
The TSX Composite Index leaped 290.21 points, or 1.8%, to conclude Monday at 16,553.26, after a loss last week of nearly 1,700 points, or 9.5%
The Canadian dollar muscled higher 0.44 cents to 75.02 cents U.S.
Utilities ruled the roost on Bay Street, with Brookfield Renewable units climbing $5.16, or 7.7%, to $72.18, while Transalta Renewables improved 94 cents, or 5.7%, to $17.35.
Among communications, BCE jumped $2.87, or 4.9%, to $61.82, while Rogers hiked $2.24, or 3.6%, to $63.75.
Real-estate concerns also moved from their Friday perches, CT REIT acquiring 68 cents, or 4.4%, to $16.13, while Northwest Health-care Properties REIT took on 54 cents, or 4.5%, to $12.48.
Energy stocks missed the party, however, as Secure Energy Services slid 16 cents, or 4%, to $3.85, while Canadian Natural Resources faded 60 cents, or 1.7%, to $33.95.
On the economic front, at 51.8 in February, up from 50.6 in January, the seasonally-adjusted IHS Markit Canada Manufacturing Purchasing Managers’ Index registered above the 50.0 no-change value for the sixth consecutive month and pointed to the strongest overall improvement in business conditions since February 2019.
ON BAYSTREET
The TSX Venture Exchange recovered 15.67 points, or 3.2% to 513.28, after a disastrous week in which the index doffed nearly 85 points, or 14.6%.
All but one of the 12 TSX subgroups were in the green by the closing bell, with utilities stronger 3.3%, communications climbing 3.2%, and real-estate companies up 2.5%.
The lone holdout was in energy, down 0.5%.
ON WALLSTREET
Stocks rose sharply in volatile trading on Monday, clawing back out of correction territory and regaining a big chunk of their losses from Wall Street’s worst week since 2008.
The Dow Jones Industrials popped 1,293.96 points, or 5.1%, to close Monday at 26,703.32.
The broader S&P 500 gained 136.01 points, or 4.6%, to 3,090.23. Those gains snapped seven-day losing streaks for the Dow and S&P 500.
The tech-heavy NASDAQ zoomed 384.90 points, or 4.5%, to 8,952.17.
Apple shares led the Dow higher with a 9.3% jump; Merck and Walmart gained 6.3% and 7.6%, respectively. Utilities, tech, consumer staples and real estate all rose more than 5% to lead the S&P 500 higher.
The major averages were coming off a massive decline from the week before as worries over the coronavirus spreading dented investor sentiment.
Stocks came off their highs after a key measure on the U.S. manufacturing showed a slowdown last month. The Institute for Supply Management manufacturing index fell to 50.1 in February, the lowest level since the end of 2019. Any reading above 50 signals an expansion.
As of Sunday, more than 89,000 cases have been confirmed around the world along with more than 3,000 virus-related deaths. Australia, Thailand and the U.S. reported over the weekend their first coronavirus-related deaths. Rhode Island was the first U.S. state on the East Coast to report a coronavirus case.
The number of cases in England rose to 35 after 12 new cases were confirmed on Sunday. Cases in China also reported more than 500 new cases on Saturday. New York Gov. Andrew Cuomo confirmed Sunday night the state’s first positive coronavirus case.
The virus’ quick spread has raised expectations for easier monetary policy from global central banks, including the Federal Reserve.
Traders have reportedly priced in a 100% probability of a 50-basis-point rate cut later this month. Expectations for another rate cut in April are around 70%.
Prices for the 10-Year U.S. Treasury gained, dropping yields to 1.15% from Friday’s 1.19%. Treasury prices and yields move in opposite directions.
Oil prices gushed $2.66 to $47.42 U.S. a barrel.
Gold prices $21.90 to $1,588.60 U.S. an ounce.
