The benchmark index of the Toronto Stock Exchange rose by almost 400 points, or almost 3% at the start of the session, while the Dow Jones Industrial Average and the S&P 500 in New York rose by about same amount as a percentage.
The gains come on the heels of solid gains on Monday after New York and New Jersey showed temporary signs of a “flattening out” of the virus epidemic.
“The positive momentum from Monday’s global market recovery continued overnight,” said Colin Cieszynski, chief market strategist at SIA Wealth Management in Toronto. “Signs that the growth of coronavirus cases is peaking in North America and has probably peaked in several European countries has helped allay investors’ fears.”
Louisiana Governor John Bel Edwards said later Monday that new hospital admissions were declining, also among the hardest hit in the United States, where the death toll nationwide is approaching the 11,000.
Resumption of the bear market?
“It looks more like a bear market recovery,” said Nancy Perez, senior portfolio manager at Boston Private Wealth in Miami.
“I think there are still a lot of headwinds that could cause this market to test the lows again. There will be the initial resumption of activities on paper, but then the actual actions will have to follow. “
Despite Monday’s rebound, the S&P 500 remains more than 21% below its record high in mid-February, and investors fear reports of further production cuts and layoffs amid extended orders home support.
A survey by economists at Reuters said that a global recession would be deeper than expected, although most have clung to hopes of a rapid rebound.
Wall Street fear indicator has steadily declined from 12-year highs, but volatility is expected to remain high as companies prepare to announce an expected decline in first quarter results and plan for strengthening reserves cash.
Exxon Mobil has curbed a wave of multi-year investments in the production of shale, LNG and deep-water oil, saying it would cut capital spending this year by 30% as the pandemic reduced demand for energy.
Oil services company Halliburton Co said it would cut about 350 jobs in Oklahoma and its leaders would cut their wages.
Exxon and Halliburton shares jumped 5.4% and 6.3% respectively, also following a spike in oil prices, in hopes that the world’s major oil producers would agree to cut production at a meeting on Thursday .
Marathon Oil and Apache Corp grew 5 to 13.3% in the pre-market trade.
Norwegian Cruise Line, Royal Caribbean and Carnival Corp, among the most heavily beaten stocks this year due to a virtual halt in global tourism, rose 15-18% when Saudi Arabia took a hit. participation in the latter reduced price.