Canada’s main stock index rose on Friday, buoyed by energy stocks, as oil prices rebounded at the end of a scorching week on Friday.
At 9:31 am ET, the Toronto Stock Exchange’s S & P / TSX composite index was up 86.37 points, or 0.61%, to 14,337.46.
US equity markets surged at the opening on Friday as some states were preparing to ease restrictions on containing the coronavirus epidemic, with a surge in orders for US-made capital goods, adding to gains .
The Dow Jones Industrial Average rose 112.98 points, or 0.48%, at the opening to 23,628.24.
The S&P 500 opened up 14.84 points, or 0.53%, to 2,812.64. The Nasdaq Composite gained 35.32 points, or 0.42%, to 8,530.08 at the opening bell.
From Tennessee to Texas to Ohio and Montana, the governors have announced their intention to quickly allow some workplaces to return to business on the signs that the pandemic is peaking in some of the most affected regions of the country .
“We have passed the summit and slowly, but surely, all states that have not had major cases will gradually reopen, and the market takes this as a signal that demand will come back,” said Thomas Hayes, director member of Great Hill Capital LLC in New York.
The early sentiment was also supported by the latest $ 500 billion bailout package that authorized the US House of Representatives the day before. The bill is with President Donald Trump, who is expected to sign it.
The S&P 500 benchmark is still 17% below its record level despite gaining ground this month and investors fear a sharp economic recession following a collapse in activity.
On Friday, however, data showed that orders for non-defense capital goods, excluding planes, a close indicator for business spending plans, edged up 0.1% on the last month, compared to economists’ expectations of a 6% drop.
“Perhaps that tells us that the potential for recovery is slightly better than expected,” said Seema Shah, chief strategist at Principal Global Investors in London.
The CBOE volatility index, known as the Wall Street fear gauge, was down for the third consecutive session.
Oil prices rose on Friday but were heading for their third weekly loss as production stoppages failed to keep pace with falling demand due to the coronavirus crisis.
Brent crude rose 58 cents, or 2.72%, to $ 21.91 at 12:15 p.m. GMT, after increasing 5% on Thursday, and U.S. oil rose 51 cents, or 3.09%, at $ 17.01 a barrel, after increasing 20% the previous day. The two contracts were trading at around $ 2 a barrel.
Prices are heading for their eighth weekly loss in the past nine months, with Brent on track to drop 22% this week and the US West Texas Intermediate (WTI) is expected to fall by more than 6%.
WTI fell into negative territory, down to $ 37.63 a barrel on Monday, while Brent fell to its lowest level in two decades.
“After the price crash early this week, which seems to have made everyone on the planet aware of the problems in the oil market, several relevant announcements of active crude oil shutdowns have been around,” said JBC Energy.
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