(RTTNews) – The Canadian market closed on a buoyant note on Wednesday as stocks from across several sectors moved higher on sustained buying support amid renewed optimism about a U.S. stimulus deal.
After asking his administration’s negotiators to halt discussions with Democrats over a coronavirus relief plan earlier on Tuesday, U.S. President Donald Trump tweeted later that night that he would support individual stimulus measures.
“The House & Senate should IMMEDIATELY Approve 25 Billion Dollars for Airline Payroll Support, & 135 Billion Dollars for Paycheck Protection Program for Small Business. Both of these will be fully paid for with unused funds from the Cares Act. Have this money. I will sign now!” Trump tweeted.
He later added, “If I am sent a Stand Alone Bill for Stimulus Checks ($1,200), they will go out to our great people IMMEDIATELY. I am ready to sign right now.”
Stocks in Canadian and U.S. markets rallied on Trump’s backtrack.
The benchmark S&P/TSX Composite Index ended stronger by 192.17 points or 1.18% at 16,428.30. The index touched a high of 16,443.91.
Healthcare stocks were the top gainers. The Capped Healthcare Index surged up 3.85%. Canopy Growth Corp (WEED.TO) spurted nearly 8%. Cronos Group (CRON.TO) gained a little over 5% and Bausch Health Companies (BHC.TO) moved up 4.7%, while Aphria Inc. (APHA.TO) and Aurora Cannabis (ACB.TO) gained 4% and 2.7%, respectively.
The Consumer Discretionary Index climbed 2.59%. Sleep Country Canada Holdings (ZZZ.TO), up 7.5%, was the top gainer in the section. Aritzia (ATZ.TO) and Magna International (MG.TO) gained 6.3% and 5.5%, respectively. Gildan Activewear (GIL.TO), Martinrea International (MRE.TO), Great Canadian Gaming Corp (GC) and Canada Goose Holdings (GOOS.TO) also rose sharply.
The Capped Energy Index gained 2.06%, riding on Seven Generations Energy (VII.TO), Crescent Point Energy (CPG.TO), Vermilion Energy (VET.TO), Whitecap Resources (WCP.TO), Canadian Natural Resources (CNQ.TO), Imperial Oil (IMO.TO) and Suncor Energy (SU.TO), which moved up 2.3 to 4.3%.
Industrials, financial and information technology shares were among the other prominent gainers.
Fairfax Financial Holdings (FFH.TO), Royal Bank of Canada (RY.TO), Manulife Financial (MFC.TO), Bank of Montreal (BMO.TO), Bank of Nova Scotia (BNS.TO) and Sun Life Financial (SLF.TO) were among the top gainers in the financial space.
Technology stocks Lightspeed Pos (LSPD.TO), Shopify Inc. (SHOP.TO), Docebo Inc. (DCBO.TO), Sierra Wireless (SW.TO) and Celestica Inc. (CLS.TO) posted impressive gains.
From the industrials section, Ballard Power Systems (BLDP.TO), Tfi International (TFII.TO), Air Canada (AC.TO), Mullen Group (MTL.TO) and Richelieu Hardware (RCH.TO) gained 3 to 5.4%.
On the economic front, the The Ivey PMI for Canada dropped to 54.3 in September of 2020 from 67.8 in the previous month, amid the coronavirus crisis. dropped to 54.3 in September of 2020 from 67.8 in the previous month, amid the coronavirus crisis.
U.S. stocks moved up sharply on Wednesday, reacting to President Donald Trump’s tweet that raised hopes of a smaller aid package sometime soon.
After opening on a firm note, stocks kept moving higher as the session progressed, and all the major averages ended with handsome gains.
The Dow ended up 530.70 points or 1.91 percent at 28,303.46, the Nasdaq climbed 210 points or 1.88 percent to settle at 11,364.60 and the S&P 500 moved up 58.49 points or 1.74 percent to 3,419.44.
The major European markets closed weak after a choppy session. The U.K.’s FTSE 100 edged down 0.06% and France’s CAC 40 declined 0.27% and Germany’s DAX moved up 0.17%. The pan European Stoxx 600 ended down 0.12%.
Most of the markets across the Asia-Pacific region ended higher on Wednesday.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.