Equities in Canada’s biggest market gathered steam on Tuesday, following a three-day slump, as upbeat comments from Washington and Beijing calmed nerves over a further escalation in their trade war, which has kept global financial markets on edge.
The S&P/TSX Composite Index gained 70.35 points to greet noon at 16,263.76
The Canadian dollar inched ahead 0.07 cents to 74.23 cents
The largest percentage gainers on the TSX were shares of Hexo Corp, which jumped 43 cents, or 4.9%, to $9.29, followed by those of CannTrust Holdings Inc, which rose 77 cents, or 10 % following upbeat results, to $8.45.
Shopify fell $1.82, to $335.96, after Morgan Stanley cut its rating on the company to "underweight" from "equal-weight".
Kirkland Lake Gold was down $1.10, 2.3%, to $46.33.
ON BAYSTREET
The TSX Venture Exchange recouped 3.2 points to 599.39
Seven of the 12 Toronto subgroups were higher midday, as health-care jumped 3.3%, while energy zoomed 2.3%, and industrials accumulated 0.7%.
Of the five laggards, gold dipped 1.2%, communications settled 0.6%, and materials sagged 0.5%.
ON WALLSTREET
Stocks rose on Tuesday, regaining some of the lost ground following a steep selloff in the previous session, as investors weighed the impact of the escalating trade war between the United States and China.
The Dow Jones Industrials rocketed 332.48 points, or 1.3%, to 25,657.47, led by a gain in Coca-Cola shares.
The S&P 500 regained 36.51 points, or 1.3%, to 2,848.38, as tech shares
The NASDAQ Composite hiked 114.13 points, or 1.5%, to 7,761.16
Boeing gained 2%, and Apple shares gained 0.8%, while Caterpillar advanced 1.8%. Bank shares also rose broadly. Citigroup, Bank of America and J.P. Morgan Chase all traded more than 1% higher while Wells Fargo shares climbed 0.7%.
In a note to clients Monday, Citi said its China economists are "cautiously optimistic that a trade deal can eventually be signed." But added that the "window to avoid further escalations in U.S./China tensions is closing fast."
Stocks doing business in China got hit the hardest. Apple, Intel and Caterpillar have all stumbled more than 10% in the six trading days since Trump’s surprise tweet announcing the higher levies.
Coca-Cola shares rose 2.4% after Morgan Stanley upgraded it to overweight from equal weight. The bank named the soda maker its “top mega-cap staples pick.”
Prices for the benchmark 10-year U.S. Treasury slid, lifting yields to 2.43% from Monday’s 2.4%. Treasury prices and yields move in opposite directions.
Oil prices recouped 95 cents to $61.99 U.S. a barrel.
Gold prices subtracted seven dollars to $1,294.80 U.S. an ounce.
