TSX Ends On Buoyant Note As Energy, Gold Stocks Rally

(RTTNews) - The Canadian stock market ended sharply higher on Wednesday, led by gains in energy and materials shares thanks to strong crude oil and gold prices.

Investors also reacted positively to news that several countries in Europe are planning to ease shutdown restrictions, and the U.S. Senate's unanimous approval to the $484 billion aid package that would provide funding for hospitals and small businesses and expand coronavirus testing.

Information technology shares rallied sharply. Utilities, consumer discretionary, consumer staples and industrial shares were among the other prominent gainers. Financial shares started off well, but ended mostly off the day's highs.

The benchmark S&P/TSX Composite Index ended up 348.10 points, or 2.5%, at 14,288.16, slightly off the day's high of 14,304.99.

Cenovus Energy (CVE.TO), B2Gold Corp (BTO.TO), MEG Energy (MEG.TO), Kinross Gold Corporation (K.TO), Canadian Natural Resources (CNQ.TO), Yamana Gold (YRI.TO) and Suncor Energy (SU.TO) gained 6.5 to 10% on impressive volumes.

Kirkland Lake Gold (KL.TO), Shopify Inc. (SHOP.TO) and Restaurant Brands International (QSR.TO) movedd up 9%, 6.85% and 6.8%, respectively.

Agnico Eagle Mines (AEM.TO), Cargojet (CJT.TO), Canadian Pacific Railway (CP.TO), Franco-Nevada Corporation (FNV.TO) and Newmont Corporation (NGT.TO) gained 4 to 5%. Kinaxis Inc (KXS.TO), Waste Connections (WCN.TO) and Constellation Software (CSU.TO) also rose sharply.

In economic news, data from Statistics Canada said the annual inflation rate in Canada dropped to 0.9% in March 2020 from 2.2% in the previous month and market expectations of 1.2%.. It was the lowest inflation rate since May 2015. Month-on-month, the consumer price index decreased 0.6% in March of 2020 over the previous month.

Core consumer prices in Canada rose 1.7% in March of 2020 over the same month in the previous year.

Another data from Statistics Canada said new housing prices in Canada went up 0.3% month-over-month in March, after a 0.4% increase in February.

U.S. stocks ended on a buoyant note, reacting positively to a substantial rebound in oil prices following the historic drop seen earlier this week. Buying interest was also generated in reaction to news that the Senate has passed a new bill to provide funding for hospitals and small businesses and expand coronavirus testing.

The Dow jumped 2%, the Nasdaq spiked 2.8% and the S&P 500 climbed up 2.3%.

Most of the markets in Europe ended with strong gains, while markets across the Asia-Pacific region turned in a mixed performance.

In commodities, West Texas Intermediate Crude oil futures for June ended up $2.21, or about 19.1%, at $13.78 a barrel, after having dropped to a low of $10.26 earlier in the session.

Gold futures for June ended up $50.50, or about 3%, at $1,738.30 an ounce, the highest close in about a week, after falling to a 2-week low in the previous session.