Equities in Toronto rose on Tuesday, helped by strength in miners as concerns over the economic damage from surging Delta coronavirus cases and a dip in U.S. Treasury yields boosted bullion’s safe-haven appeal.
TSX Composite index recuperated 163.94 points to open for business Tuesday at 19,890.39.
The Canadian dollar faded 0.03 cents to 78.41 cents U.S.
National Bank of Canada raised the rating on Bombardier to outperform from sector perform. Bombardier gained six cents, or 4.4%, to $1.43.
CIBC cut the rating on Great-West Lifeco to neutral from outperform. Great-West shares acquired 23 cents to $36.80.
CIBC cut the target price on Western Forest Products to $2.60 from $2.90. Western shares gathered six cents, or 3.2%, to $1.94.
Canada on Monday said it would allow fully vaccinated U.S. tourists into the country starting from Aug. 9 after the COVID-19 pandemic forced an unprecedented 16-month ban that many businesses complained was crippling them.
The TSX Venture Exchange moved back up again 10.73 points, or 1.2%, to 881.64.
All but one of the 12 TSX subgroups showed positive readings in the first hour, with gold up 1.7%, consumer discretionaries improving 1.6%, and materials 1.4% to the good.
Only health-care stocks were in the red, failing 0.6%.
Stocks rebounded on Tuesday after concerns about the spread of COVID-19’s delta variant caused investors to dump equities in the prior session.
The Dow Jones Industrials revived 506.06 points, or 1.5%, out of the rubble of Monday, to kick off Tuesday at 34,468.10,
The S&P 500 regained 45.41 points, or 1.1%, to 4,303.95
The NASDAQ recovered 90.04 points to 14,365.02. Many of the stocks that were hit the hardest on Monday, were bouncing early Tuesday. American Airlines and Delta Air Lines added 2% while United added 1%.
Royal Caribbean gained 1%, after falling 4% on Monday. Carnival and Norwegian added more than 2%.
Bank shares are bouncing as investors continue to monitor bond yields under pressure. Wells Fargo and Morgan Stanley rose 3% and 2%, respectively. JPMorgan, Bank of America and Citigroup added more than 1%.
IBM shares jumped more than 4% on Tuesday morning. The enterprise technology and services provider reported second-quarter results after the bell on Monday, topping expectations and showing the strongest revenue growth in three years. The company had the biggest point impact on the Dow.
Netflix, which will release its second-quarter earnings after the bell on Tuesday, was down 1.9%.
New COVID cases are rebounding in the U.S. as the delta variant spreads, largely among the unvaccinated. The U.S. is averaging about 26,000 daily cases in the last seven days, more than double the average from a month ago, according to data from the Centers for Disease Control.
Prices for 10-Year Treasurys showed slight gains, lowering yields to 1.17% from Monday’s 1.19%. Treasury prices and yields move in opposite directions.
Oil prices inched up 10 cents to $66.52 U.S. a barrel.
Gold prices hiked $12.30 to $1,821.50 U.S. an ounce.