BNN Bloomberg's mid-morning market update: May 26, 2020
4:15 p.m. ET: North American equities close near session lows amid U.S.-China tensions
North American equity markets closed in positive territory, though near session lows amid concerns over U.S.-China tensions after Bloomberg News reported the White House is considering sanctions on Chinese officials. The S&P/TSX Composite Index finished the day up 0.48 per cent, the Dow Jones Industrial Average was up 2.1 per cent, the Nasdaq Composite Index gained 0.17 per cent and the S&P 500 was up 1.23 per cent, capping the session just shy of the psychological 3,000 level.
In Toronto, seven of the 11 TSX subgroups finished the day in positive territory, led by the financials, consumer discretionary and real estate sectors. Information technology, materials and health care were the lead laggards on the index.
Crude oil prices hung on to gains as investors weigh the impact of gradual economic reopenings and production cuts from the OPEC+ group, with West Texas Intermediate up 2.65 per cent to trade at US$34.15 per barrel. Alberta’s Western Canadian Select had a stronger showing, up 6.12 per cent to trade at US$26.18 per barrel.
The Canadian dollar was up a full cent against its American counterpart to trade at 73.53 cents U.S., though the greenback was broadly weaker against all of its major-market peers.
1:00 p.m. ET: North American equity markets gain through midday
North American equity markets held on to gains through the midday trade, with the S&P/TSX Composite Index up 0.3 per cent, and American benchmarks trading near session highs coming out of the Memorial Day long weekend. The S&P 500 was up 1.8 per cent, the Dow Jones Industrial Average was 2.7 per cent higher and the Nasdaq Composite Index gained one per cent.
In Toronto, eight of the TSX Composite’s subgroups were in positive territory, led by financials, consumer discretionary and communications stocks. Information technology, materials and health care were the lead laggards on the composite.
Shares of Bank of Nova Scotia were outperformers, up more than five-and-a-half per cent after the company topped analyst expectations in its most recent quarter as it kicked off Canadian bank earnings season. National Bank will be the next to report after the closing bells Tuesday.
Oil moderated some earlier gains, with U.S. benchmark West Texas Intermediate up 1.8 per cent to trade at US$33.85 per barrel. Alberta’s Western Canadian Select was up 4.3 per cent to trade at US$25.74 per barrel.
The Canadian dollar surged a full cent against its American counterpart to 72.55 cents U.S., though the U.S. dollar was broadly weaker against all of its major peers.
9:35 a.m. ET: North American markets rally, S&P 500 breaks above 3,000
North American equity markets rallied into the early trade Tuesday, with the S&P/TSX Composite up 0.65 per cent, the Dow Jones Industrial Average up 2.4 per cent, the Nasdaq Composite Index rising 1.7 per cent and the S&P 500 up two per cent to break above the 3,000 point level for the first time since early March.
American markets were playing some catch-up after the Memorial Day long weekend, buoyed by some optimism over the gradual reopening of global economies.
In Toronto, shares of Bank of Nova Scotia rose nearly five per cent in early trading after Canada’s third-largest bank kicked off the earnings season for the Big Six. The second act will come after the closing bells when National Bank reports, as investors keep a close eye on loan loss provisions from the nation’s largest lenders.
Oil prices were on the rise, with U.S. benchmark West Texas Intermediate gaining three-and-a-half per cent to trade at US$34.50 per barrel. Alberta’s Western Canadian Select gained a little more than five per cent to trade at US$25.94, though Canadian crude is only priced a handful of times a day.