Futures for stocks in Canada’s largest centre rose on Tuesday, as oil prices jumped on hopes for a global production cut and a slowdown in infections in Europe and the United States aided sentiment.
The TSX Composite Index hiked 654.40 points, or 5.1%, to end Monday’s session at 13,592.70.
The Canadian dollar hiked 0.63 cents early Tuesday to 71.35 cents U.S.
June futures gained 2.1% early Tuesday.
British cinema operator Cineworld said it has shut all its 787 cinemas across 10 countries due to the coronavirus pandemic and that it was in talks with its lenders for ongoing liquidity requirements.
The company said it was monitoring the progress of its $1.65-billion takeover of Canadian rival Cineplex, a deal that had led Cineworld to take on additional financing of about $2.2 billion, triggering concerns about its debt pile.
CIBC cut the target price on Air Canada to $29.00 from $37.00
JPMorgan cut the target price on Canadian Natural Resources to $26.00 from $27.00
RBC cut the target price on Rogers Communications to $64.00 from $66.00
This morning (around 10 a.m. ET) Western University’s IVEY School of Business is out with Purchasing Managers’ Index for March.
ON BAYSTREET
The TSX Composite Index hiked 654.40 points, or 5.1%, to end Monday’s session at 13,592.70.
ON WALLSTREET
Stock futures pointed to a Tuesday opening jump in early morning trade, building on a steep rebound in the previous session.
Futures for Dow Jones Industrials screamed higher 782 points, or 3.5%, early Tuesday to 23,270.
Futures for the S&P 500 popped 81.5 points, or 3.1%, at 2,726.
Futures for the NASDAQ Composite jumped 224.75 points, on 2.8%, to 8,254.50.
Stocks are still in bear-market territory with the S&P 500 about 21.5% off its record high. Many on Wall Street believe stocks haven’t fully priced in the potential corporate earnings collapse as the coronavirus outbreak have virtually shut down the global economy.
Stocks surged on Monday as a slew of coronavirus headlines pointed to a potential stabilization in the U.S. The Dow soared 1,600 points, posting its third biggest point gain ever. The S&P 500 jumped 7% to its highest level since March 13. With Monday’s rally, the S&P 500 bounced about 20% from its 52-week low on March 23.
The moves came after a series of positive coronavirus developments were reported in Asia.
South Korea reported Tuesday less than 50 new cases of infection for the second day running. China also posted no new deaths as of April 6 for the first time since January when it started publishing daily updates.
The two Asian countries were among those which saw spikes in infection rates earlier in the outbreak, with the first cases being reported out of China.
Still, the cases in the U.S., the world’s most affected country, topped 347,000 with at least 10,000 deaths, according to data from Johns Hopkins University.
Overseas, in Japan, the Nikkei 225 jumped 2% Tuesday, while Hong Kong, the Hang Seng Index gained 2.1%.
Oil prices rallied 43 cents to $26.51 U.S. a barrel.
Gold prices spiked $11.70 to $1,705.60 U.S. an ounce.