Stock markets continue to recover from big declines, loonie up sharply

North American markets were soaring Thursday in the wake of a rebound on China’s main market and a report showing the U.S. economy expanded at a much faster pace than previously estimated in the second quarter.

TORONTO — North American markets were soaring Thursday in the wake of a rebound on China’s main market and a report showing the U.S. economy expanded at a much faster pace than previously estimated in the second quarter.

The positive news had a major spillover effect on commodity markets, sending oil and base metals prices skyrocketing and providing a major boost to the resource-heavy Toronto Stock Exchange.

In afternoon trading, the S&P/TSX composite index was up 354.18 points or 2.65 per cent at 13,735.77 as investors bought up stocks beaten down in the six-day slide that began last week by fears over a slowdown in China’s economy.

In New York, the Dow Jones industrial average was up 195.75 points or 1.20 per cent at 16,481.26 after a more than 600-point jump Wednesday, its third-biggest point gain of all time and largest since October 2008. The broader S&P 500 index rose 32.76 points to 1,973.27 and Nasdaq gained 80.68 points to 4,778.21.

“It looks to be more buying on depressed valuations,” said Tim Dreiling, senior portfolio manager at the Private Client Reserve at U.S. Bank. “Capital comes back in, finding valuations to be more favourable than a week ago.”

Benchmark oil, which has been slumping badly, rose $3.62 or more than nine per cent to US$$42.22 a barrel, while October natural gas lost four cents to US$2.66 per thousand cubic feet.

Copper also reversed its slide, with the September contract shooting up seven cents to US$2.32 a pound. December gold retreated $2.40 to US$1,122.20 an ounce.

The loonie, which tends to respond to changes in oil prices, was higher, up 0.60 of a cent at 75.66 cents U.S.

It also benefited from a weakening of the greenback after comments Wednesday by William Dudley, president of the New York Federal Reserve Bank, that the case for a U.S. interest rate hike in September is now “less compelling” given China’s troubles, low oil prices and emerging markets weakness.

Thursday’s good news began in China, where the Shanghai index posted its biggest gain in eight weeks, rising more than two per cent. It was the sell-off on China’s main market, which wiped out nearly 23 per cent off its value over the past week, that raised concerns over the strength of the Chinese economy, the world’s second largest, triggering worldwide selling.

Also cheering markets was a U.S. Commerce Department report that showed gross domestic product expanded at an annual rate of 3.7 per cent in the April-June quarter.

That was much higher than the initial estimate of 2.3 per cent and a big improvement over the 0.6 per cent advance in the first quarter and an indication that world’s largest economy was on solid footing heading into the second half of the year.

Just Posted

Climate change’s impact on outdoor hockey discussed in Red Deer

Red Deer River Watershed Alliance held a forum Friday at the Alberta Sports Hall of Fame

Collision between Red Deer transit bus and truck investigated by RCMP

No one on bus was hurt, truck driver had minor injuries

Eckville man facing about 80 child sexual exploitation charges in court

More than half a million photos and videos found on electronic devices

Good-bye ice and snow, hello potholes on Red Deer roads

City workers will be spending 20 hours a day on various road repairs

Red Deer woman wins $1 million in lottery

A Red Deer woman spent $5 on a lottery ticket and became… Continue reading

WATCH: Fashion show highlights Cree designers

The fashion show was part of a Samson Cree Nation conference on MMIW

Puddle splashing: A rite of spring

Is there anything more fun than driving through water-filled potholes in the… Continue reading

Special evaluations can help seniors cope with cancer care

Before she could start breast cancer treatment, Nancy Simpson had to walk… Continue reading

Home renovator Mike Holmes oversees reno for paralyzed Humboldt Broncos player

AIRDRIE, Alta. — One of Canada’s most recognizable home renovators has acted… Continue reading

The endless war against invasive species

Group looks to protect native ecological environments in Alberta

WATCH: Fashion show highlights Cree designers

The fashion show was part of a Samson Cree Nation conference on MMIW

Flyers, Blackhawks, Sabres and Lightning to Europe in ‘19-20

Jakub Voracek was psyched at the mere suggestion the Philadelphia Flyers might… Continue reading

Danish receiver Nielsen looking to defy the odds again, this time at CFL combine

TORONTO — He’s coming to the CFL’s national combine as a definite… Continue reading

Mom with kids on YouTube channel suspected of child abuse

MARICOPA, Ariz. — A woman who operated a popular YouTube channel featuring… Continue reading

Most Read