TSX Hangs (Barely) onto Gains

Enghouse, Turquoise Hill Among Big Gainers

Equities in Canada’s largest centre edged higher on Friday as China said it had decided to cancel tariffs scheduled to take effect on Sunday and that both sides have agreed on the context of the first phase of a trade deal.

The TSX Composite Index nosed up 14.94 points to venture into Friday’s noon hour at 16,961.84

The Canadian dollar eased back 0.29 cents at 75.74 cents U.S.

Mexico's Senate on Thursday overwhelmingly approved the revised U.S.-Mexico-Canada Agreement trade deal that includes tougher enforcement of worker rights and the elimination of a patent provision for biologic drugs.

The largest percentage gainers on the TSX were Enghouse Systems, which jumped $5.69, or 14.3%, to $45.40, after reporting fourth quarter results, and Turquoise Hill Resources, which added eight cents, or 9.2% to 95 cents.

Alacer Gold recovered from earlier losses to pick up six cents to $6.78, by noon EST.

First Quantum Minerals, however, dropped 44 cents, or 3.2%, to $13.52, as the miner began arbitration proceedings against Zambian state miner

ZCCM-IH to try to resolve a dispute over a money transfer to the parent company of Kansanshi Mining, which is majority-owned by the Toronto-listed group.

ON BAYSTREET

The TSX Venture Exchange gained 1.64 points to 539.02

By midday, seven of the 12 subgroups were falling, as communications and consumer discretionary stocks each faded 0.9%, while health-care was lower 0.7%

The five gainers were led by information technology, up 1.2%, gold, brighter by 0.9%, and materials, advancing 0.7%.

ON WALLSTREET

Stocks declined on Friday even after China and the U.S. agreed to a phase-one trade deal as investors took some money off the table following back-to-back gains and a giant rally in the market this year.

The Dow Jones Industrials shrugged off previous gains and found itself in the red 57.73 points to by noon to 28,074.32

The S&P 500 stepped back 6.41 points from Thursday’s record close to 3,162.16.

The NASDAQ inched higher 1.29 points from Thursday’s all-time high to 8,718.61.

Stocks have been on a massive tear this year despite the lingering trade fears. Through Thursday’s close, the S&P 500 is up 26.4% for 2019. The Dow has rocketed 20.6%, while the NASDAQ has skyrocketed 31.4% this year.

The trade deal will include a rollback of some of the China tariffs and halts additional levies set to take effect on Sunday.

China agreed to significant purchases of U.S. agricultural products, but failed to give a specific amount, disappointing some investors who expected a firmer commitment. On the U.S. side, investors were hoping for more than just a partial rollback of some tariffs.

Prices for the 10-Year U.S. Treasury gained, sharply lowering yields to 1.82% from Thursday’s 1.90%. Treasury prices and yields move in opposite directions.

Oil prices added 60 cents to $59.78 U.S. a barrel.

Gold prices charged ahead $7.60 at $1,479.90 U.S. an ounce.

Trump, Beijing Reveal Phase-One Deal, Stocks Still Lower