The Canadian stock market is rallying in early trade Wednesday, as it attempts to bounce back from two days of losses. The market is receiving a boost from rising commodity prices. Gold and energy stocks are among the best performers in early trade.
Struggling Alberta announced stimulus plans to offset a huge drop in oil prices. Approximately $34 billion of capital spending will fund transit, roads, schools, hospitals and other projects over the next five years. Alberta hopes oil prices will have snapped back by then, allowing the province to pay for significant deficit spending.
Markets in Europe and the United States are climbing ahead of the Federal Reserve announcement this afternoon. The Fed is widely expected to hold off on raising interest rates, but traders will be paying close attention to any signals regarding a rate hike in December.
The benchmark S&P/TSX Composite Index is up 184.08 points or 1.34 percent at 13,883.68.
On Tuesday, the index closed down 91.30 points or 0.66 percent, at 13,699.60. The index scaled an intraday high of 13,789.33 and a low of 13,662.48.
The Gold Index is increasing by 3.72 percent. Gold prices are rising Wednesday amid speculation the Federal Reserve will delay raising interest rates and issue a dovish outlook on monetary policy later today.
Kinross Gold (K.TO) is gaining 4.30 percent and Yamana Gold (YRI.TO) is rising 6.36 percent. Goldcorp (G.TO) is advancing 2.36 percent and Eldorado Gold (ELD.TO) is climbing 2.64 percent. Barrick Gold (ABX.TO) is up 6.59 percent and IAMGOLD (IMG.TO) is increasing by 4.20 percent. Royal Gold (RGL.TO) is higher by 2.90 percent and B2Gold (BTO.TO) is adding 1.99 percent.
AEterna Zentaris Inc. (USA) (NASDAQ:AEZS) a specialty biopharmaceutical company, engages in developing and commercializing novel treatments in oncology, endocrinology, and women’s health. The Company shares are trading 10.62% above their 52 week low price after the last close and -96.30% below the 52 week high. Its latest closing price was down -85.32% from the average-price of 200 days while it kept its distance from the SMA50 at -37.78% and -31.88% compared with the SMA 20.
Shares of Barrick Gold Corporation (USA) (NYSE:ABX) were 30.12% up 52 week lows as of the latest close and -43.46% below the 52 week high. Its latest closing price was up -23.98% from the average-price of 200 days while it maintained a distance from the SMA 50 at 9.95% and 4.14% compared with the SMA 20. Barrick Gold Corporation produces and sells gold and copper. The company is also involved in exploration and mine development activities.
Yamana Gold Inc. (USA) (NYSE:AUY) engages in gold mining and related activities, including exploration, extraction, processing, and reclamation. The stock’s latest price traded at 75.44% up 52 week lows after the closing bell and was -55.20% behind its 52 week high. Its latest closing price was -19.55% below the SMA200 while the distance from the SMA 50 and SMA 20 was 24.94% and 8.45% respectively.
Kinross Gold Corporation (USA) (NYSE:KGC) is trading 60.74% higher than the 52 week low price and -41.51% behind the 52 week high. The stock’s latest closing price was -6.18% down from the average-price of 200 days while it kept its distance from the SMA50 at 15.84% and 2.72% compared with the SMA 20. Kinross Gold Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of gold bearing properties
Valeant Pharmaceuticals Intl Inc (NYSE:VRX) develops, manufactures, and markets pharmaceuticals, over-the-counter products, and medical devices worldwide .The Company so far this year has moved down -18.24% and its monthly performance stands at -25.99% .The stock was up 32.20% from its 52 week low and was -55.65% below the 52 week high. Its latest closing price was down -43.78% from the average-price of 200 days while it kept its distance from the SMA50 at -40.52% and -25.13% compared with the SMA 20.