Apr. 2, 2009 (Baystreet.ca) --
10:20 am EST
Stock markets are higher amid hopes that the G20 conference in London will make progress in fighting the economic downturn and an important change to U.S. accounting rules that could provide a boost to damaged banks' balance sheets.
The S&P/TSX Composite Index leaped to life at Thursday's opening bell, gaining 147.29 points in the first half-hour to 9,089.11
Investors also took in huge job losses at transportation giant Bombardier Inc. The Montreal-based company is cutting 10% or 3,000 of its workers from its aerospace division as the firm reduces business and regional jet production outlook for the coming year.
On the economic front, Bank of Canada Governor Mark Carney, who won support from Prime Minister Stephen Harper to implement extraordinary monetary measures, is likely to say policy makers are ready to buy commercial paper and other corporate debt to spur the economy, and create new money to pay for it.
Carney, who has almost run out of room to cut interest rates, said he'll detail rules on April 23 for how so-called quantitative and credit easing policies would work. They may include plans for purchases of corporate debt, including commercial paper, if needed to boost the economy.
The Canadian dollar was up nearly a full cent at 80.24 cents U.S.
ON BAYSTREET
Of the 13 TSX subgroups, all but two were positive. Metals and mining was again the leader, picking up 5.5%, followed by energy, up 3.8% and industrials, ahead 3.3%.
Gold was one of two losing groups, down 5%, the other being materials, off 2.4%
The TSX Venture Exchange down 1.61 to 968.49 while the Nasdaq Canada Index added 19.75 points to 488.76
ON WALLSTREET
The Dow Jones Industrials average powered out of the blocks to gain 165.77 points, to sit at 7,927.27
The S&P 500 index gained 18.77 points to 829.85, while the Nasdaq picked up 34.21 points to 1,585.81.
Economically speaking, readings helped boost hopes that the U.S. is getting past the worst of its economic downturn.
Meanwhile, a report on Wednesday showed auto sales plunged in March, but rose from February levels, leading to suggestions that the industry has bottomed.
The weekly report for initial jobless claims and the February factory orders index are on tap Thursday.
The government said that 669,000 people filed for first-time unemployment benefits in the week ended March 28. This was an increase of 12,000 from the prior week's tally of 657,000.
It was also much higher than the forecast. The total for last week was expected to be 650,000, according to a consensus of economists surveyed by Briefing.com.
Orders for U.S.-made factory goods increased 1.8% in February, the first gain after six months of large declines, the Commerce Department reported Thursday. Excluding transportation goods, orders rose 1.6%. Excluding the 36% increase in defense goods, orders rose 0.9%. An increase of 1.5% was expected for February, compared to a decline of 1.9% the prior month.
Former AIG CEO Hank Greenberg is due to testify before a House oversight panel. The hearing was due to begin at 10 a.m. ET.
Also, the independent Financial Accounting Standards Board changed the so-called mark-to-market accounting rules, which require companies to value assets at prices reflecting current market conditions.
The changes will allow the assets to be valued at what they would go for in an "orderly" sale, as opposed to a forced or distressed sale.
Oil prices surged in step with the rebounding stock market, rising $3.51 U.S. per barrel to $51.90 U.S.
Gold prices were down Thursday by $24.20 U.S. to $903.50 U.S. an ounce.