Canada's main stock index opened slightly higher on Tuesday, as upbeat comments from the United States and China calmed nerves over a further escalation in their trade war which has roiled global financial markets.
The S&P/TSX Composite Index recovered 43.62 points to begin Tuesday at 16,237.03
The Canadian dollar inched ahead 0.05 cents to 74.22 cents
Desjardins raised the target price on Bank of Montreal to $108.00 from $106.00. BMO shares fell 22 cents to $102.64
RBC cut the price target on KP Tissue to $8.00 from $9.00. KP shares were flat at $7.91.
CIBC raised the target price on Premium Brands Holdings to $76.00 from $72.00. Premium shares lost 63 cents to $77.45.
ON BAYSTREET
The TSX Venture Exchange recouped 4.9 points to 601.09
All but three of the 12 Toronto subgroups were higher in the first hour, with health-care gaining 2.2%, energy advancing 1.3%, and industrials squeezing up 0.4%.
The three laggards were information technology, down 0.4%, communications fading 0.3%, and gold, dipping 0.1%.
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 vaulted 148.69 points to 25,473.68, led by a gain in Coca-Cola shares.
The S&P 500 regained 18.74 points to 2,830.61, as tech shares outperformed.
The NASDAQ Composite re-strengthened 50.26 points to 7,697.29
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 2.41% from Monday’s 2.4%. Treasury prices and yields move in opposite directions.
Oil prices recouped 55 cents to $61.59 U.S. a barrel.
Gold prices subtracted $2.90 to $1,298.90 U.S. an ounce.
