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TSX Ends 12% Up As Stocks Rally On Stimulus Hopes

Canadian stocks rose sharply and ended with hefty gains on Tuesday, riding on the extensive asset-buying scheme of the Federal Reserve, and optimism about the U.S. Senate agreeing on a massive near $2 trillion relief package aimed to limiting the economic impact of the virus pandemic.

Reports from Italy showing a drop in new coronavirus cases for a second day running helped a bit in lifting investor sentiment.

Strong uptick in crude oil and gold prices played a role as well in driving the market up north.

The benchmark S&P/TSX Composite Index ended up 1,342.59 points, or almost 12%, at 12,571.08, just a few points off the day's high of 12,588.28.

On Monday, the benchmark index ended down 623.32 points, or 5.26%, at 11,228.49.

Shares from consumer discretionary, financial, materials, energy and utilities sections were among the biggest gainers. Real estate stocks rebounded strongly from recent losses.

Information technology, industrial, telecom, consumer staples and healthcare stocks shone as well.

First Quantum Minerals (FM.TO) soared as much as 42%. Manulife Financial Corporation (MFC.TO) climbed more than 20% and Air Canada (AC.TO) gained about 19%.

TC Energy (TRP.TO), Enbridge (ENB.TO), Toronto-Dominion Bank (TD.TO), Royal Bank of Canada (RY.TO), Canadian Natural Resources (CNQ.TO) and Barrick Gold Corporation (ABX.TO) gained 12 to 15%.

Kinross Gold (K.TO), Bank of Nova Scotia (BNS.TO), Canadian Imperial Bank of Commerce (CM.TO) and Yamana Gold (YRI.TO) ended stronger by 10 to 12%.

In the U.S. market, stocks moved sharply higher today, after ending the previous session at its worst closing level in over three years.

The major averages ended the day just off their highs of the session. The Dow skyrocketed 2,112.98 points or 11.3%, its biggest gain in percentage terms since 1933. The Nasdaq spiked 557.18 points or 8.1%, while the S&P 500 soared 209.93 points or 9.4%.

The rally on Wall Street came amid indications Democrats and Republicans are closing in on an agreement on a massive fiscal stimulus bill.

Stock markets across Europe and the Asia-Pacific region moved sharply higher.

In commodities, West Texas Intermediate Crude oil futures for May ended up $0.65, or about 2.8%, at $24.01 a barrel.

Gold futures for April settled at $1,660.80 an ounce, up $93.20, or about 6%, the biggest single-session gain in dollar terms, since November 1984. In percentage terms, gold futures' gain in the session, was the biggest in eleven years.

Silver futures for May ended up $0.996 at $14.257 an ounce, while Copper futures for May settled at $2.1800 per pound, gaining $0.0795 for the session.

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