The real estate, IT and healthcare sectors led the TSX up.
Although Canada’s benchmark remains in the technical territory of the bull market, north of 20% from its last low, some stocks of skepticism are in true rally mode.
In an email to BNN Bloomberg, Philip Petursson, chief investment strategist and head of capital markets research at Manulife Investment Management, said he was not convinced that this was the start of a trend to long term.
“This is a classic bear market trap, sort of it attracts investors, but I think we’re going to see a leg down,” he said.
“When we look at other markets in recession … you tend to see a number of times in the bear market, only to disappoint. “
2:45 p.m. ET: North American markets extend their gains in the afternoon
North American stock markets extended their gains in the afternoon, with the S & P / TSX Composite Index, the S&P 500, the Dow Jones Industrial Average and the Nasdaq Composite all trading more than 2% to maintain near their intraday highs.
In Toronto, nine of the 11 benchmark composite sectors were in positive territory, dominated by real estate, information technology and consumer discretionary. Only everyday consumer goods and communications were in the red.
On a share-specific basis, Chorus Aviation Inc., Intertape Polymer Inc. and Exchange Income Corp. were the biggest percentage winners in the composite, each posting double-digit gains.
Oil won, with the US benchmark West Texas Intermediate increasing by more than seven and a half percent before tomorrow’s OPEC ++ virtual meeting. The Western Canadian selection from Alberta cut previous gains by 13%, trading at just under US $ 4.50 per barrel.
11:45 a.m.ET: North American stocks accelerate gains until noon
North American stock markets accelerated their gains until noon, the S & P / TSX composite index rose by more than one percent and the US benchmarks showed gains of 2% north to trade at the highest of the session.
The rebound comes after a volatile trading session Tuesday, which saw the whipsaw value of stocks, the S&P 500 falling three and a half percent from peak to trough.
In Toronto, eight of the TSX’s 11 sectors were in positive territory, with information technology, consumer discretionary and real estate posting the largest gains. Consumer goods, communications and materials have reversed the positive trend.
On a share-specific basis, Intertape Polymer Group Inc., Exchange Income Corp. and Seven Generations Ltd. were the biggest percentage winners.
The Canadian dollar posted weakness against its global peers. The loonie traded slightly lower compared to its US counterpart, at around 71.36 cents US by noon.
Crude oil continued to post gains ahead of Thursday’s virtual OPEC ++ meeting, with West Texas Intermediate increasing by more than 3% before the meeting, where potential production cuts are on the table. Last week, crude oil prices increased an accumulation of 15 million barrels in American stocks. Western Canadian Select rose more than 18% to $ 4.65 US per barrel, although the price of Canadian crude is only a few times a day.
9:35 a.m.ET: North American markets post modest gains at opening
North American equity markets posted modest gains early in the session, as the S & P / TSX Composite Index rose just under 1%, the S&P 500, the Dow Jones Industrial Average and the Nasdaq Composite were up ‘about one and a quarter percent open after volatile trading on Tuesday.
Oil prices climbed higher as the US benchmark West Texas Intermediate rose two and a half percent before Thursday’s OPEC ++ virtual meeting. Crude has increased speculation, the cartel and other producers may agree to cut production by up to 10 million barrels per day, although questions remain about the level of world production on which these reductions will be based, given the massive increase in Saudi Arabia’s production during its oil price war with Russia.
The United States is cutting its 2020 oil price forecast by 1.2 million barrels a day before the meeting.
Canadian crude oil started the day unchanged at US $ 3.92 a barrel (Western Canadian Select is sold only a few times a day). This comes after a dire warning from Alberta Premier Jason Kenney who said on Tuesday that Canadian crude prices could plunge into negative territory in the face of the oil price war.