The Globe and Mail reports in its Friday, March 20, edition that Canadian stocks enjoyed a respite from the brutal sell-off of the past four weeks, posting gains after central banks announced new measures to combat the devastating economic impact from the coronavirus pandemic. The Globe's David Berman writes that the rebound in oil follows a report from The Wall Street Journal that the Trump administration may attempt diplomatic efforts to get Saudi Arabia to cut production.
Rising oil lifted beaten-up energy stocks. On Thursday Suncor Energy closed up 56 cents at $15.63 and Canadian Natural Resources finished up 20 cents at $11.20. However, some of the biggest moves in Canada were from companies that are particularly exposed to the global economy, suggesting some investors believe that a recovery is in sight. Interfor, a lumber company, soared $1.21 to close at $6.25. Magna International jumped $3.20 to close at $39.56. Manulife Financial, the insurance giant, climbed $1.24 to finish at $14.34. Stocks have embarked upon several brief rebounds recently, only to see the gains disappear as news about the COVID-19 outbreak grows increasingly grim.
Each rebound has been followed by lower lows for major indexes.
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