Markets rebound after Monday’s virus sell-off
Toronto and New York markets rebounded Tuesday, nearly recovering losses sustained in Monday’s major sell-off, triggered by fears over the coronavirus impacting China. The Nasdaq leapt 1.43% while the Dow recovered only 0.66%. The TSX rose 0.33%, and regained half the ground it lost between Friday and Monday.
Tech, industrials, telcos, cannabis (health) and even energy led the way in Toronto with Ballard Power continuing its zigzag performance, spiking over 13%, but still a long ways from its all-time high just eight days ago. Speaking of zigzaging, Bombardier soared 8.33% after Germany announced it would be buying its jets. At the same time, though, Germany railroad, Deutsche Bahn is refusing to buy 25 intercity trains due to technical defects.
North American investors appeared to be assured by reports that China is containing the coronavirus, such as closing the border at Hong Kong, but cases and deaths continue to rise. Starbucks, which has closed more than half of its Chinese locations and admits it will take a quarterly and 2020 hit from the lost revenues. The market seems to be accepting the news. Starbucks was down only 0.15% on Tuesday. Lastly, Apple announced an earnings 1.68% beat after-hours. Expect it to climb Wednesday morning, and expect more developments about the outbreak in China.