Equities in Canada’s largest market soared Thursday, as investors breathed a sigh of relief that the U.S. and China appeared ready to set their trade differences aside and reach a deal.
The S&P/TSX Composite added 125.97 points to close Thursday at 16,574.81
The Canadian dollar faded 0.04 cents to 75.57 cents U.S.
Health-care stocks pulled much of the rest of the market along, with CannTrust Holdings growing 16 cents, or 7.4%, to $2.32, while Canopy Growth hiked $2.25, or 6.9%, to $34.79.
Energy issues were also gushing, as Birchcliff Energy towered 17 cents, or 9%, to $2.05, while Ensign Energy prospered 19 cents, or 6.2%, to $3.26
Among tech concerns, Descartes Systems Group thundered higher $4.75, or 9.9%, to $52.75, while Celestica galloped 49 cents, or 5.6%, to $9.19
Gold stocks took a black eye, as Centerra Gold stumbled $1.17, or 9.3%, to $11.39, while Barrick Gold suffered $1.88, or 7.2%, to $24.42.
First Majestic Silver was emblematic of troubles going on within the resource sector, dumping $1.37 in price, or 9.2%, to $13.59, while MAG Silver fell $1.45, or 8.2%, to $16.33.
In real-estate, Riocan Real Estate Investment Trust faded 72 cents, or 2.7%, to $26.10, while FirstService retreated $3.25, or 2.3%, to $135.81
ON BAYSTREET
The TSX Venture Exchange dropped 6.67 points, or 1.1%, to 586.26
Eight of the 12 Toronto subgroups were positive on the day, with health-care rolling up 3.7%, energy improving 2.7%, and information technology clicking 2.4% higher.
The four laggards were weighed down most by gold, off 5.%, while materials sank 2.5%, and real-estate faded 0.4%.
ON WALLSTREET
Stocks surged on Thursday after the U.S. and China agreed to meet next month in Washington to discuss trade.
The Dow Jones Industrial Average came off its highs of the day, but still advanced 372.68 points, or 1.4%, to 26,728.15
The S&P 500 gained 38.22 points, or 1.3%, to 2,976, led by a 2.1% gain in the tech sector, and closed around 1.7% from its record high
The NASDAQ Composite popped 139.95 points, or 1.8%, to 8,116.83
Advanced Micro Devices rose 1.8%, while On Semiconductor gained 2.6%. Bank stocks such as J.P. Morgan Chase and Citigroup each traded more than 2% higher while trade bellwethers Caterpillar gained 3.3% and Boeing rose 1%
Shares of Slack, maker of the popular workplace messaging chat app, dropped 3.4% after the company issued its first earnings report as a public company.
On the data front, private payrolls in the U.S. increased by 195,000, according to ADP and Moody’s Analytics. Economists polled by Dow Jones expected payrolls to grow by 140,000. The report from ADP and Moody’s Analytics is seen by investors as a preview to the U.S. government’s monthly non-farm payrolls report, which is scheduled for release Friday morning.
The payrolls data comes as the Federal Reserve is reportedly gearing up to lower interest rates by 25 basis points later this month. The move would follow another quarter-point rate cut back in July.
China’s Commerce Ministry issued a statement Thursday morning saying that Liu He, Beijing’s top negotiator on trade, had spoken with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.
The two sides agreed to hold another round of trade negotiations in Washington, D.C., towards the beginning of next month, and consultations will be made in mid-September in preparation for the meeting
Prices for the benchmark 10-year U.S. Treasury slumped sharply, raising yields to 1.57% from Wednesday’s 1.46%. Treasury prices and yields move in opposite directions
Oil prices fell off six cents to $56.20 U.S. a barrel.
Gold prices dropped off $34.30 to $1,526.10 U.S. an ounce.
