As of 9:42 a.m. ET (1:42 p.m. GMT), the Toronto Stock Exchange’s S&P/TSX Composite Index was up 140.32 points, or 0.7%, to 20,322.24.
China cut its prime rate for five-year loans – which influences mortgage pricing – by 15 basis points on Friday, a bigger cut than expected. This reduction, the second this year, aims to support an economy handicapped by the new blockages of COVID-19.
“So the key questions for today are can the bulls find enough support to keep the markets up throughout the day and if the bears take a break today, do they come back next week?” , said Colin Cieszynski, chief market strategist at SIA Wealth Management.
“In other words, a rebound seems to have started but it’s unclear whether it’s sustainable or not.”
The energy sector climbed 1.3% as oil prices remained flat and on track for the week as a proposed EU ban on Russian oil offset investor concerns over the weakening of economic growth which hits demand.
The financial sector gained 0.9%, while the industrial sector rose 0.5%.
The benchmark has gained 1% so far this week and was poised to break a seven-week losing streak as gains in resource-related stocks helped cushion the blow of the recent rout in global equities.
The materials sector, which includes precious and base metal miners and fertilizer companies, rose 0.2% as the price of gold hit a one-week high and the dollar weakened. weakened. [GOL/]