The Chronicle Herald (Provincial)
Oil rebounds amid government stimulus hopes
NEW YORK — Most major stock markets edged up slightly in mixed markets on Thursday as investors weighed a rebound in oil prices and prospects for further government stimulus against stark economic data showing the toll of the coronavirus pandemic.
Investors tilted toward emerging markets from safehaven assets like the dollar and government bonds.
Gold prices jumped as much as 1.5 per cent to top a one-week high on hopes for the impact of stimulus spending.
Major U.S. indexes initially rose after news that U.S. jobless claims fell to 4.4 million, a decline from 5.2 million the week before, but still about 200,000 more than expected. A record 26 million Americans, representing 16 per cent of the labour force, have sought unemployment benefits since March 21.
"The market is ignoring all the weak data so far, it's priced in," said Priya Misra, head of global rates strategy for TD Securities.
"We have moved ahead from the second quarter being awful," Misra said, adding that market participants were turning toward the outlook for the third and fourth quarters.
A discouraging report at midday that Gilead Sciences experimental coronavirus drug flopped in its first randomized clinical trial cooled initial optimism that had major U.S. indexes up more than one per cent.
Oil soared after oil producing nations said they would accelerate production to counter the oversupply that caused record plunges early this week.
U.S. crude rose 23.66 per cent to $17.04 per barrel and Brent was at $21.73, up 6.68 per cent on the day.
In Toronto, the TSX closed at 14,251.09, down 37.07, or 0.26 per cent.
The Dow Jones Industrial Average rose 39.44 points, or 0.17 per cent to 23,515.26. But the S&P 500 lost 1.51 points, or 0.05 per cent, to 2,797.8 and the Nasdaq Composite dropped 0.63 point, or 0.01 per cent, to 8,494.75.
Spot gold added 1.0 per cent to $1,730.50 an ounce. U.S. gold futures gained 0.73 per cent to $1,733.30 an ounce.
Investors expected the U.S. House of Representatives to pass legislation on Thursday to authorize another US$484 billion for coronavirus relief, pushing the total crisis spending near an unprecedented $3 trillion.