Canada's main stock index hung onto early gains by noon on Tuesday in a broad-based rally led by energy stocks, which rose in tandem with oil prices.
The S&P/TSX Composite Index came off its highs of the morning, but remained positive 43.15 points to 14,547.28
The Canadian dollar faded 0.12 cents at 75.09 U.S.
The largest percentage gainers on the TSX were New Gold Inc, which surged 12 cents, or 9.4%, to $1.40, after reporting fourth quarter results, followed by First Quantum Minerals Ltd, which rose 71 cents, or 7.1%, to $10.70.
Toromont Industries fell 38 cents to $54.86, while Barrick Gold Corp. let go of 71 cents, or 4.1%, to $16.48.
On the economic front, Canadian exports fell 2.9% in November, while imports decreased 0.5%. As a result, Canada's merchandise trade deficit with the world widened from $851 million in October to $2.1 billion in November.
ON BAYSTREET
The TSX Venture Exchange faltered 2.13 points to 588.5
All but three of the 12 TSX subgroups were midday, business, as information technology shares strengthened 1.2%, while industrials were better by 0.6%, and consumer discretionary shares hiked 0.5%.
The three laggards were health-care, down 1.1%, gold, off 0.8%, and financials dropped 0.3%.
ON WALLSTREET
Stocks rose on Tuesday as investors remained cautiously optimistic Washington and Beijing could move forward on a trade deal. However, a decline in bank shares kept a lid on the market’s overall gains.
The Dow Jones Industrial Average descended from its peaks of the morning, but remained buoyant 156.28 points to 23,687.63, led by Boeing.
The S&P 500 gained 12.57 points to 2,562.26, as energy outperformed.
The NASDAQ Composite gained 32.81 points to 6,856.28, as Amazon jumped 1%.
Shares of other tech giants like Apple, Facebook, and Google-parent Alphabet also traded higher. Theese gains add to the so-called FAANG trade’s sharp rise since late December. Through Monday’s close, Facebook shares have surged 12.2% since then, while Amazon has rocketed 24.7%. Alphabet shares, meanwhile, are up 35% in that time period.
But losses in bank shares kept gains in check for U.S. stocks. J.P. Morgan Chase fell 0.6%, while Wells Fargo and Bank of America both dropped at least 1%. The losses came after Jefferies downgraded J.P. Morgan, citing the possibility of no rate hikes from the Federal Reserve.
Chipmakers also fell. Nvidia and Applied Materials both fell 4% to lead the decline in semiconductors. Lam Research and Advanced Micro Devices also dropped more than 3%. The decline in chip stocks came after Samsung slashed its fourth-quarter earnings guidance due to lackluster demand for memory chips.
Tuesday’s moves come as several officials from the world’s two largest economies continue talks to resolve their ongoing trade dispute. U.S. Commerce Secretary Wilbur Ross told the media on Monday that both global powers could reach a settlement “they can live with, and that addresses all the key issues.”
China’s Foreign Ministry previously said Beijing had "good faith" to work with Washington to reach an agreement before a March deadline.
Prices for the benchmark for the 10-year U.S. Treasury faded, raising yields to 2.71% from Monday’s 2.69%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.41 to $49.93 U.S. a barrel.
Gold prices shed $4.20 at $1,285.70 U.S. an ounce.
