Canada's main stock index opened higher on Thursday as a ceasefire deal between Israel and Lebanon raised hopes of de-escalation in the broader U.S.-Iran conflict, while investors looked ahead to a key payrolls report on Friday.
The TSX Composite Index recovered 277.85 points to begin Thursday at 35,079.39.
The Canadian dollar gained 0.03 cents to 72.02 cents U.S.
TransAlta said on Wednesday it will acquire two natural gas-fired peaking facilities near Denver from Blackstone for about $1 billion, strengthening its presence in the Western U.S. power market.
TransAlta shares skidded $2.06, or 10.3%, to $18.02.
Finance Minister François-Philippe Champagne said Canada will extend steel tariff-rate quotas and tariff relief on certain U.S. steel and aluminum imports by one year on Wednesday, citing the need to shield workers from global excess capacity and give the industry longer-term certainty.
Israel and Lebanon agreed to a ceasefire, raising hopes for a de-escalation between Washington and Tehran, even as Iran struck Kuwait and U.S. forces hit near the Strait of Hormuz, underscoring continuing tensions in the months-long conflict.
ON BAYSTREET
The TSX Venture Exchange rebounded 10.46 points, or 1%, to 1,015.66.
All but three of the 12 TSX subgroups were higher, led by gold, ahead 2.7%, materials, better by 2.1%, and health-care, acquiring 1.6%.
The three laggards were energy, sagging 0.9%, information technology, reversing 0.5%, and utilities, off 0.03%.
ON WALLSTREET
The S&P 500 fell Thursday as traders dumped chip stocks following an underwhelming report from Broadcom, while the Dow Jones Industrial
Average surged as investors appeared to rotate into other parts of the stock market.
The 30-stock index made back Thursday all it had lost on Wednesday, piling on 702.72 points, or 1.4%, to 51,389.79.
The much broader index dipped 2.45 points to 7,551.23.
The NASDAQ slipped 180.66 points to 26,673.32.
UnitedHealth led the Dow higher, rising 6%, while Walmart advanced 2%. If that gain holds, it would mark the Dow’s best daily performance since April 30.
Shares of Broadcom traded 14% lower after the chipmaker reported a fiscal second-quarter revenue miss. Cybersecurity stock CrowdStrike also fell 10% after giving lackluster second-quarter revenue guidance.
Semiconductor names, which led the latest leg higher in the market’s rally to record levels, fell broadly. Arm Holdings and Micron Technology were both down more than 6%, while Marvell Technology pulled back by 5%.
Prices for the 10-year Treasury gained ground, lowering yields to 4.47% from Wednesday’s 4.49%. Treasury prices and yields move in opposite directions.
Oil prices fell $3.71 to $92.31 U.S. a barrel.
Gold prices charged ahead $47.20 to $4,514.10 U.S. an ounce.
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