Equities in Toronto advanced on Wednesday as signs of potential de-escalation in the Middle East conflict helped allay investor concerns about extended disruptions to energy supplies.
The TSX jumped 324.15 points to pause for lunch Wednesday at 32,265.74.
The dollar demurred 0.25 cents to 72.43 cents U.S.
Pakistan has delivered a U.S. proposal to defuse tensions and help end the war in the Gulf, with either Islamabad or Turkey playing potential hosts if the talks went ahead, an Iranian official told Reuters on Wednesday. However, Tehran has publicly denied it will negotiate with the Trump administration.
The Canadian dollar eased 0.25 cents to 72.43 cents U.S.
Dollarama soared after brokerage CIBC upgraded the retailer to "outperform" from "neutral," while reducing its target price. Dollarama shares progressed $2.54, or 1.5%, to $171.20.
ON BAYSTREET
The TSX Venture Exchange gained 16.38 points, or 1.7%, to 955.36.
All but three of the 12 TSX subgroups were higher midday, with gold shinier 3.8%, materials better by 3.4%, and utilities, improving 1.3%.
The three laggards were energy, down 0.3%, while consumer staples and information technology each slid 0.1%.
ON WALLSTREET
Stocks jumped on Wednesday following reports that the U.S. has given Iran a plan to bring the conflict to an end, sending crude prices tumbling.
The Dow Jones Industrials recovered 287.61 points to 46,411.67
The S&P 500 added 31.81 points to 6,588.18
The NASDAQ surged 149.75 points to 21,911.64.
Gains in shares of technology supported the broader market Wednesday, with Nvidia, AMD and Intel all jumping. Stocks that would benefit from a solid economy also gained with financials and industrials in the green.
The Associated Press, citing unnamed officials in Islamabad, reported that Iran has received a 15-point proposal from the U.S. to end the war. The New York Times had first reported that the U.S. sent Iran a peace plan. The plan was delivered by way of Pakistan, that outlet said, citing two unnamed officials.
To be sure, the two countries appear to be very far apart and attacks from both sides have continued. The Wall Street Journal report that the U.S. is deploying the Army’s 82nd Airborne Division to the Middle East.
The peace plan report comes after Trump earlier Tuesday said that the U.S. is “in negotiations right now” with Iran. He added that Tehran is “talking sense” and suggested it is eager to make a peace deal.
Iran state media has said the country won’t accept U.S. ceasefire efforts, however.
Prices for the 10-year Treasury hiked, lowering yields to 4.32% from Tuesday’s 4.39%. Treasury prices and yields move in opposite directions.
Oil prices declined $2.21 to $90.14 U.S. a barrel.
Gold prices jumped $159.30 to $4,561.80 U.S. an ounce.
