TSX Fails To Hold Early Gains, Ends Weak

(RTTNews) - Despite another jump in crude oil and gold prices, the Canadian stock market failed to hold early gains and settled slightly weak on Thursday due to worries about the economic impact of the coronavirus pandemic.

A report that Gilead Sciences' potential coronavirus treatment remdesivir flopped in its first randomized clinical trial weighed on sentiment.

The benchmark S&P/TSX Composite Index ended down 37.07 points, or 0.26%, at 14,251.09, after having risen to 14,422.42 earlier in the session.

Energy and materials shares broadly held on to most of their intraday gains, although stocks from industrial and information technology gave up their gains and setlled well off the day's highs.

Shares from utilities and consumer staples closed weak, Financial and consumer discretionary stocks too ended mostly lower, while healthcare and real estate stocks ended mixed.

U.S. stocks closed well off the session's highs and the major averaged ended mixed with investors reacting to conflicting reports regarding Gilead Sciences' potential coronavirus treatment remdesivir.

A report from the Financial Times said the drug "flopped" in its first randomized clinical trial. The FT, citing draft documents accidentally published by the World Health Organization, said the Chinese trial showed remdesivir did not improve patients' condition or reduce the pathogen's presence in the bloodstream.

Gilead responded to the report with a statement claiming the study was unable to provide statistically meaningful conclusions due to low enrollment. "As such, the study results are inconclusive, though trends in the data suggest a potential benefit for remdesivir, particularly among patients treated early in disease," Gilead said.

Major European markets closed on a strong note, while markets across the Asia-Pacific region turned in a mixed performance.

In commodities, West Texas Intermediate Crude oil futures for June ended up $2.72, or nearly 20%, at $16.50 a barrel.

Gold futures for June ended up $7.10, or about 0.4%, at $1,745.40 an ounce, well off the session's high of $1,764.20.

Silver futures for May ended up $0.220 at $15.357 an ounce, while Copper futures for May settled at $2.3120 per pound, gaining $0.0220, or about 1%.