(REVISION: DELETES REFERENCE TO CANADA HOUSING STARTS FOR OCTOBER)
Futures for Canada’s main stock index hit a three-month high on Monday after Pfizer Inc said its experimental COVID-19 vaccine was more than 90% effective and as Joe Biden won the U.S. presidential election.
The TSX faded 15.34 points to conclude Friday and the week at 16,282.83, for a gain on the week of more than 700 points, or 4.5%.
The Canadian dollar gained 0.51 cents Monday at 77.29 cents U.S.
December futures shot higher 3.7% Monday.
Pfizer and German partner BioNTech SE are the first drugmakers to release successful data from a large-scale clinical trial of a coronavirus vaccine.
Air Canada posted its third straight quarterly loss on Monday, as the COVID-19 pandemic crippled air travel forcing Canada’s biggest airline to cut a majority of its flights.
Canopy Growth reported a smaller quarterly loss on Monday, buoyed by cost cuts and more people turning to cannabis to cope with coronavirus-related lockdowns.
The TSX Venture Exchange popped 14.86 points, or 2%, Friday to 742.29, for a weekly gain of 58 points, or 8.6%.
Investors cheered on Monday after drugmakers Pfizer and BioNTech said trial data indicated their Covid-19 vaccine is 90% effective.
Futures for the Dow Jones Industrials took off for the stars, gaining 1,537 points, or 5.5%, to 29.741.
Futures for the S&P 500 jumped 142.75 points, or 4.1%, at 3,642.75.
Futures for the NASDAQ Composite spiked 55.5 points, or 0.5%, to 12,120.50, as traders left crowded growth and stay-at-home stocks in favor of cyclical companies that could outperform if the Pfizer vaccine is approved for widespread use.
Many on Wall Street applauded the announcement as a sign that the pharmaceutical industry may soon have a viable way to control a disease that has derailed the U.S. economy for much of 2020 and has killed more than 230,000 Americans.
The 90% effective rate from Pfizer and Germany’s BioNTech was better than what the market was expecting. Dr. Anthony Fauci, the director of the National Institute of Allergy and Infectious Diseases, has said that a vaccine that was 50% to 60% effective would be acceptable.
Stocks were already set to continue their big post-election rally Monday as Democrat Joe Biden defeated incumbent Donald Trump in the U.S. presidential race to become president elect.
Overseas, in Japan, the Nikkei 225 index hiked 2.1%, while in Hong Kong, the Hang Seng index leaped 1.2%.
Oil prices leaped $3.63 to $40.77 U.S. a barrel.
Gold prices collapsed $50.60 to $1,901.10.