TORONTO, April 9 (Reuters) – Canada’s largest stock market rebounded Thursday and made its biggest weekly gain in 11 years as investors focused on a new Federal Reserve program to support the US economy rather than data showing record job losses for Canada.
The Toronto Stock Exchange’s S & P / TSX composite index closed 1.7% higher at 14,166.63, amid nearly 10% gains in gold stocks. For the week, the TSX rose nearly 9.5%, its largest gain since January 2009.
The index, which will close for the Good Friday holidays, has recovered around 45% from its recent plunge, which could encourage some investors to adjust their portfolios.
“This could lead to some rebalancing,” said Diana Avigdor, portfolio manager and chief operating officer at Barometer Capital Management. “I don’t think a lot of people, especially little mom and pop, have had a lot of time to get out of the market and reorganize their risk tolerance during the sale.”
Wall Street also climbed on Friday as the Fed deployed a massive $ 2.3 trillion program to support local governments and businesses hit by the coronavirus epidemic.
The number of coronavirus deaths in Canada is expected to drop from 461 to 22,000 by the end of the pandemic, health officials said while the economy lost a million jobs last month as several provinces lost their jobs. closed non-essential businesses.
“As long as we are closed, you can expect these numbers to continue to be closed,” said Avigdor. “The question is how long and what standardization will look like and when.”
Ottawa is deploying more than CAD $ 200 billion in measures to support the economy, while the Bank of Canada has cut interest rates to 0.25% and started quantitative easing, a program to buy large-scale government bonds.
Gold rose nearly $ 40 to about $ 1,685 an ounce, while the price of oil, one of Canada’s major exports, fell 9.3% to $ 22.76 the barrel. Investors doubted that the supply reduction agreement between OPEC members and its allies would adequately resolve the collapse in global fuel demand caused by the pandemic.
The Canadian dollar appreciated 0.3% to 1.3972 for the US dollar, or 71.32 US cents. For the week, the loonie rose 1.1%.
Canadian government bond yields fell across the board, falling 5.3 basis points 10-year to 0.760%. (Reporting by Fergal Smith; Editing by Lisa Shumaker)