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Canadian Stocks Rebound on Hopes of Government Stimulus

Michael Bellusci

(Bloomberg) -- Canadian equities surged Tuesday on expectations governments will introduce economic buffers to counter the impact from coronavirus, Oil rebounded from its worst loss since 1991.

Canada’s Prime Minister Justin Trudeau and Deputy Prime Minister Chrystia Freeland said the government will announce measures soon to help offset the drag from the coronavirus and oil-price shock. They join U.S. President Donald Trump and other governments around the world in promising fiscal stimulus.

The S&P/TSX Composite Index rose 3.1% to 14,958.09 Tuesday in Toronto. That was the biggest jump since November 2011 but only partly erasing Monday’s 10.3% dive. All eleven sectors rose, with information technology and industrials leading the way. Energy shares also rallied.

Also, Pattern Energy Group said its stockholders voted to approve the pending $2.6 billion buyout by Canada Pension Plan Investment Board. The company’s Canadian-listed shares gained 2.9% Tuesday.

Stocks

Ballard Power gained 18%MEG Energy rallied 17%First Quantum rose 15%Cenovus Energy advanced 12%BlackBerry rose 9.3%Shopify gained 8.3%Seven Generations fell 7.8%Inter Pipeline fell 5.5%AltaGas dropped 4.7%

Commodities

Western Canada Select crude oil traded at a $13 discount to West Texas IntermediateSpot gold fell 1.8% to $1,650.00 an ounce

FX/Bonds

The Canadian dollar fell 0.3% to C$1.3746 per U.S. dollarThe 10-year government bond yield climbed 11 basis points to 0.647%

To contact the reporter on this story: Michael Bellusci in Toronto at mbellusci2@bloomberg.net

To contact the editors responsible for this story: Courtney Dentch at cdentch1@bloomberg.net, Jacqueline Thorpe

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