The S&P/TSX Composite Index closed yesterday at the highest level since early March, before the first of those gut-wrenching nosedives that hit Canadian stocks. Now, after three straight winning sessions, the TSX has soared almost 39 per cent since the low was set on March 23. We’ll take a closer look today at what’s led the way since then and assess how much higher equities can climb in the absence of a treatment for COVID-19. Momentum will be challenged today amid a broadly negative mood in the market, with European indices and U.S. futures under pressure, although U.S. futures bounced off their lows after the European Central Bank announced it is expanding and extending its pandemic asset purchase program.
STOCKWELL DAY RESIGNS FROM TELUS BOARD
The longtime Conservative politician resigned from Telus’s board of directors yesterday after he disputed the notion of systemic racism in Canada and likened being teased for wearing glasses to being the target of racism in a recent television appearance. In a short statement, Telus distanced itself from its former director, saying Day’s comments “are not reflective of the values and beliefs of our organization.” Day’s bio has also been removed from the website of McMillan LLP, where he had been serving as an advisor. We’ll continue chasing insight on whether Corporate Canada is doing enough to create the conditions for minority groups to excel.
INSOLVENCIES PLUNGE
No matter how you slice it, Canadian were better able to manage their finances in April. Total insolvencies sank 38.7 per cent month-over-month and 43.5 per cent year-over-year, an improvement for both individuals and consumers. Is this the payoff from the federal government’s emergency aid strategy? We’ll look into that.
OTHER NOTABLE STORIES
-That didn’t take long. Just a couple days removed from packing it up at the Bank of Canada, Stephen Poloz has been appointed to Enbridge’s board of directors.
-The latest Canadian trade balance data has COVID-19’s fingerprints all over it. Exports sank 29.7 per cent in April. Imports fell 25.1 per cent. Statistics Canada says the declines are “unparalleled”. All told, Canada’s international trade deficit widened to $3.3 billion in the month.
-The Chartered Professional Accountants of Canada disclosed a security breach today affecting 329,000 people. It says the information obtained by hackers “predominantly” relates the distribution of its magazine, including names, addresses and email addresses. However, it also said some passwords and credit card numbers may have also been obtained.
-Methanex could be a stock to watch today after it announced last night that it had secured covenant relief from its lenders. “We would like to thank our banking partners for their ongoing support during this challenging business environment,” CEO John Floren said in a release.
-We’ll also watch Tiffany after LVMH said it has no plans to buy TIF shares on the market. LVMH agreed in November to pay US$135 per share for Tiffany, whose shares closed yesterday at US$114.24.
NOTABLE RELEASES/EVENTS
-Notable data: Canadian trade balance, U.S. initial jobless claims, U.S. trade balance
-Notable earnings: Saputo, Gap
-7:45 a.m. ET: European Central Bank releases interest rate decision (news conference at 830)
-11:15 a.m. ET: Prime Minister Justin Trudeau addresses Canadians from Ottawa
-2:00 p.m. ET: Bank of Canada Deputy Governor Toni Gravelle delivers speech via videoconference to Greater Sudbury Chamber of Commerce
-Las Vegas casinos allowed to reopen
Every morning BNN Bloomberg's Managing Editor Noah Zivitz writes a ‘chase note’ to BNN Bloomberg's editorial staff listing the stories and events that will be in the spotlight that day. Have it delivered to your inbox before the trading day begins by heading to www.bnnbloomberg.ca/subscribe
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