Futures for stocks on this country’s main index rebounded on Tuesday as oil prices gained on hopes of economic stimulus and possible talks with members of the Organization of the Petroleum Exporting Countries.
The TSX Composite Index fell off 1,660.78 points, or 10.3%, to conclude Monday at 14,514.24, its biggest drop since the October 1987 stock market crash.
The Canadian dollar squirted 0.03 cents higher early Tuesday to 73.24 cents U.S.
March futures shot back up 4.6% early Tuesday.
Canadian banks have increased oil and gas lending at about double the rate of total business loan growth over the past three quarters, raising the prospect of higher loan losses after Monday’s oil price crash.
Economists have opined the country’s federal budget may be delayed and the deficit likely will be higher than expected as oil prices slump and the coronavirus spreads.
Cenovus Energy on Tuesday announced a near 32% cut to its capital spending for the year and a temporary suspension of its crude-by-rail program as an erupting Saudi-Russia oil price war dealt a blow to the struggling Canadian oil industry.
A senior U.S. envoy on Monday pressed Canada about Ottawa’s forthcoming decision on whether to allow China’s Huawei Technologies to take part in its 5G network, a move Washington opposes, officials said.
RBC cuts rating on Ensign Energy Services to sector perform from outperform.
National Bank of Canada cut the price target on Franco-Nevada to $147.50 from $150.00
Scotiabank raised the target price on Pretium Resources to $9.75 from $9.00.
The TSX Venture Exchange slumbered 43.39 points, or 8.6%, Monday to 463.15.
Stock futures rallied back early Tuesday morning after the S&P 500’s worst day since the financial crisis as investors cheered potential stimulative measures to stem the economic downturn from the coronavirus.
Futures for the Dow Jones Industrials jumped 941 points, or 3.9%, early Tuesday to 24,818.
Futures for the S&P 500 gained 108 points, or 3.9%, at 2,855.75.
Futures for the NASDAQ Composite vaulted 322 points, on 4.1%, to 8,273.50.
Dick’s Sporting Goods and Bluelinx are among the companies reporting earnings today.
President Donald Trump floated on Monday the idea of “a payroll tax cut or relief” to offset the negative impact from the coronavirus. The potential tax incentives come on top of an $8.3-billion spending package Trump signed last month.
The market suffered a historic selloff in the previous session, with the Dow slumped 7.8% and the S&P 500 plunging 7.6%, both posting their worst day since 2008. The Dow’s 2,013-point drop was also the biggest-ever point drop for the 30-stock average.
The deep stock rout put the record-long bull market in jeopardy. With Monday’s drop, the S&P 500 is 19% below its intraday all-time high of 3,393.52 from Feb.19. The benchmark would fall into bear market territory if it slumps 20% from its peak or more.
Overseas, in Japan, the Nikkei 225 recovered 0.9% Tuesday, while in Hong Kong, the Hang Seng Index re-surging 1.4%.
Oil prices climbed $3.23 to $34.36 U.S. a barrel.
Gold prices descended $12.80 to $1,662.90 U.S. an ounce.