Canada's TSX recoups some recent losses, loonie steadies as oil rebounds

TORONTO (Reuters) - Canada’s main stock market rallied on Thursday and the loonie recovered from an earlier four-year low, as the price of oil posted its biggest-ever gain and global policymakers took steps to try to contain the financial rout triggered by the coronavirus outbreak.

FILE PHOTO: A Canadian dollar coin, commonly known as the "Loonie", is pictured in this illustration picture taken in Toronto, January 23, 2015. REUTERS/Mark Blinch/File Photo

The Toronto Stock Exchange Composite Index .GSPTSE closed up 3.8% at 12,170.52, with gains across all 10 of the index's main groups. The index has fallen about 32% from its Feb. 28 peak.

The healthcare sector, which includes once high-flying cannabis shares, rose 9.5%, while energy was up 5.4%.

U.S. crude oil prices CLc1 spiked by 25%, the largest single-day gain on record, after plunging the previous day to near 20-year lows.

Stocks globally .WORLD also rose as the Federal Reserve increased access to dollars for central banks in nine countries and after the European Central Bank pledged late on Wednesday to buy 750 billion euros in sovereign debt through 2020.

The scramble for U.S. dollar .DXY liquidity continued despite efforts to contain financial stress, with the greenback climbing about 1.5% against a basket of major currencies.

The Canadian dollar CAD=D4 was nearly unchanged at 1.4518 to the greenback, or 68.88 U.S. cents. The currency touched its weakest intraday level since January 2016 at 1.4669.

Canadian Prime Minister Justin Trudeau said that he expected the closure of the U.S.-Canada border to take effect overnight on Friday and was working with domestic carriers to bring home citizens stranded overseas.

On Wednesday, Trudeau said his government would provide C$27 billion ($18.6 billion) in stimulus directly to Canadian families and businesses and Bank of Canada Governor Stephen Poloz left the door open to further interest rate cuts.

Canada added jobs in February for the eighth consecutive month, but the 7,200 increase was the smallest since October, a report from payroll services provider ADP showed on Thursday.

Canadian government bond yields fell across a flatter curve, with the 10-year down 4.3 basis points at 1.002%. The gap between Canada’s 10-year yield and the U.S. equivalent narrowed by 6 basis points to a spread of 15.3 basis points in favor of the U.S. bond.

Reporting by Fergal Smith; Editing by Peter Cooney