China slashes tariffs and markets surge
China announced it would slash retaliatory tariffs on hundreds of U.S. goods, totaling US$75 billion. The surprise announcement, intended to smooth China-US trade, lifted North American markets to even fresher highs Thursday. After shrugging off coronavirus fears, markets have been breaking new highs daily.
On Thursday, the TSX closed up 0.57% above 17,750, a new high. Consumer staples and real estate led the charge. In fact, most sectors including the drowsy financial sector substantially gained, while energy plunged 1.32%. Big movers included Semafo, a little-known gold producer in west Africa, popped 9%, while BCE climbed 2.12%. Utilities continued to climb as Quebec-based Boralex made another record high by rising 4.27%.
In New York, the Nasdaq outperformed its peers, rallying 0.67%. Tech was on investors’ minds Thursday. After the bell, Pinterest released earnings, beating on the top and bottom lines, and was rewarded with a 10% pop. Uber reported a mixed bag, as their gross bookings missed, but their overall loss was not as deep as expected. It wobbled up and down in after-hours trading. In contrast, Activision Blizzard gained 2.4% during Thursday’s session, then added 2% after the bell when the gamer announced a revenue beat. Those investors will sleep well, perhaps in a Casper bed. CASP-N IPO‘d at $12/share, but closed at a respectable $13.50.