(Reuters) - Canada's main stock index shot up on Tuesday after the U.S. Federal Reserve cut interest rates in an emergency move to battle the economic impact from the coronavirus outbreak, raising bets that other major economies will follow suit.
- At 10:05 a.m. ET (1505 GMT), the Toronto Stock Exchange's S&P/TSX composite index (GSPTSE) was up 200.86 points, or 1.21%, at 16,754.12.
- The U.S. central bank's emergency move was designed to shield the world's largest economy from the impact of the virus.
- Traders also bet Canada's central bank will cut interest rates for the first time in almost five years on Wednesday.
- Prime Minister Justin Trudeau said on Tuesday the Canadian government is open to the idea of helping firms that are suffering economic damage.
- Nine of the index's 11 major sectors were higher.
- The materials sector (GSPTTMT), which includes precious and base metals miners, surged 2.1% as gold prices jumped on the rate cut announcement. [GOL/] [MET/L]
- The energy sector (SPTTEN) climbed 0.3% as U.S. crude (CLc1) prices were up 1.5% a barrel, while Brent crude (LCOc1) added 1.2%. [O/R]
- On the TSX, 213 issues were higher, while 16 issues declined for a 13.31-to-1 ratio favouring gainers, with 56.20 million shares traded.
- The largest percentage gainers on the TSX were Ballard Power (TO:BLDP), which jumped 8.3%, Cronos Group Inc (TO:CRON) fell 5.9%, the most on the TSX.
- The most heavily traded shares by volume were Bombardier (TO:BBDb) and Baytex Energy Co (TO:BTE).
- The TSX posted one new 52-week high and no new low.
- Across all Canadian issues there were 10 new 52-week highs and four new lows, with total volume of 92.74 million shares.