Stocks jump 5% as hopes build for virus stimulus package

Tokyo soars 8% as US stimulus deal lifts world markets

Stock market futures tumble as stimulus bill hits roadblock in Congress

The Canadian dollar rose 0.2% to C$1.4466 per USA dollarThe 10-year government bond yield rose 8.1 basis points to 0.857%.

The main American stock indexes surged on optimism that the huge government rescue bill to save the economy from the coronavirus is close to being passed, and an unlimited stimulus promise from the Federal Reserve.

South of the border, US stocks jumped more than five per cent as Congress appeared close to a deal on an unprecedented spending bill to prop up the slumping economy. The currency, which last Thursday hit a four-year low at 1.4669, traded in a range of 1.4375 to 1.4532.

SPDR S&P 500 ETFs were up 5.34%.

The blue-chip index, which has erased over three years of gains in one month, is now on track for its second best day in almost 12 years.

A separate proposal from Democrats in the U.S. House of Representatives to grant airlines and contractors a $40 billion bailout helped lift shares of American Airlines, Delta Airlines and United Airlines by about 10% premarket.

Boeing, once a symbol of US manufacturing strength, jumped 17% after Chief Executive Officer Dave Calhoun said the company still expected a "mid-year" return to service of the 737 MAX aircraft. Its shares have lost almost two-thirds of its value so far in 2020.

While the rescue package and the Fed's historic boost will ease some pain in financial markets, traders remained doubtful of a long-lasting recovery without evidence of a peaking in the number of new COVID-19 cases.

At 10:25 a.m. ET the Dow Jones Industrial Average was up 1,446.34 points, or 7.78%, at 20,038.27, the S&P 500 was up 152.18 points, or 6.80%, at 2,389.58 and the Nasdaq Composite was up 430.45 points, or 6.27%, at 7,291.13. Negotiations on the bill were set to continue Tuesday morning.

Data on Monday showed USA business activity hit a record low in March, bolstering expert views that the economy was already in a recession. It has been pressured in recent weeks by the demand destruction caused by the virus and a price war between producers Russian Federation and Saudi Arabia.

Within the energy patch, Canada's largest oil and gas company, Suncor Energy Inc., said it would cut its capital program this year by 26 per cent as it tries to outlast the plunge in crude prices.

March futures, however, gained 5% early Tuesday.

"The energy complex is posting a strong rebound on Fed unlimited QE (Quantitative Easing) and expectations for a major US fiscal package today", said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois.

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