Canada’s main stock index touched a more than three-week high on Tuesday in a broad-based rally led by energy stocks, which rose in tandem with oil prices.
At 11:30 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was up 60.45 points, or 0.42 per cent, at 14,564.58.
Nine of the 11 major TSX sectors were higher led by 0.9-per-cent rise in the energy sector.
Encana Corp. was up 2.4 per cent, while Husky Energy Inc. and Cenovus Energy Inc. rose 1.7 per cent and 1.6 per cent, respectively.
The materials sector, which includes precious and base metals miners and fertilizer companies, gained 0.3 per cent.
The financials sector lost 0.2 per cent. Canadian Imperial Bank of Commerce was down 0.9 per cent, while National Bank of Canada and Royal Bank of Canada declined 0.7 per cent.
Health care stocks dipped 1.5 per cent as Aphria Inc. fell 5 per cent and Aurora Cannabis Inc. lost 3.9 per cent.
An index of world stocks rose for the third straight session on Tuesday, lifted by hopes that the United States and China would strike a deal to end their months-long trade war that has hurt sentiment in financial markets.
Increased risk appetite helped lift U.S. Treasury yields, while the dollar, which hit an 11-week low on Monday, rebounded as the euro weakened on concerns about a slowdown in the euro zone economy.
MSCI’s world equity index, which tracks shares in 47 countries, rose 0.38 per cent, to a more than three- week high.
The United States and China will continue trade talks in Beijing for an unscheduled third day, a member of the U.S. delegation said on Tuesday.
The meetings this week are the first face-to-face talks since U.S. President Donald Trump and Chinese President Xi Jinping agreed in December to a 90-day truce in their trade war.
Trump, in a post on Twitter on Tuesday, reiterated his recent statement that the talks with China were going well but gave no details.
On Wall Street, rising hopes of progress in the talks lifted shares. Tuesday’s advance added to gains logged over the past two sessions, following last week’s strong U.S. employment report and comments from the Federal Reserve chief that calmed worries that interest rate hikes would hurt growth.
“With the U.S. and China in talks to de-escalate their trade conflict, the central bank showing a willingness to slow its tightening cycle and the economy still performing well, the markets may be looking a little more attractive,” Craig Erlam, senior market analyst at Oanda in London, wrote in a note.
The Dow Jones Industrial Average rose 138.81 points, or 0.59 per cent, to 23,670.16, the S&P 500 gained 7.84 points, or 0.31 per cent, to 2,557.53 and the Nasdaq Composite added 15.47 points, or 0.23 per cent, to 6,838.94.
European shares hit a three-week high in a broad-based rebound on hopes of a possible trade deal between China and the United States. The pan-European STOXX 600 was up 1.15 per cent.
U.S. Treasury yields rose for a third day, in line with higher U.S. stocks, on improved risk appetite, while the Treasury Department also prepared to sell new supply.
Benchmark 10-year notes fell 7/32 in price on Tuesday to yield 2.705 per cent, up from 2.682 per cent on Monday.
The dollar rose against the euro as investors focused on the risk of a euro zone recession after data showed more signs of slowing in the region. The euro was 0.24 lower against the greenback.
“The euro had its upturn halted by German data showing the third decline in as many months in a gauge of factory growth,” said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington.
The improved appetite for risk and the stronger dollar weighed on gold prices. Spot gold slipped 0.33 per cent to $1,284.42 per ounce.
Oil prices extended gains, supported by hopes that the U.S.-China trade talks might defuse the trade dispute, while OPEC-led supply cuts also tightened markets.
Brent crude futures were up $0.82, or 1.43 per cent, to $58.15 per barrel. U.S. West Texas Intermediate (WTI) crude oil futures climbed $0.87, or 1.79 per cent, to $49.39 per barrel.
Reuters