(RTTNews) - Canadian stocks climbed higher Wednesday morning amid signs of de-escalation in tensions in the Middle East on reports of diplomatic talks between U.S. and Iran for a peace deal.
Stocks came off higher levels on reports that Iran has rejected the US peace plan as "excessive" and issued five conditions to end the war.
A sharp drop in oil prices has helped ease concerns about inflation, contributing significantly to the positive mood in markets across the globe today. Both Brent crude futures and WTI crude dropped over 6% amid signs of some de-escalation in tensions in the Middle East.
Materials, healthcare and technology stocks moved up sharply. Several stocks from utilities, financials, consumer discretionary and industrials sectors too posted strong gains. Energy stocks showed some weakness.
The benchmark S&P/TSX Composite Index, which surged to 32,453.14, gaining more than 500 points in the process, came off that level subsequently but still remains firmly placed at 32,165.32, up 223.73 points or 0.7% over previous close.
According to the New York Times, U.S. has sent Iran a 15-point plan to end the war in the Middle East. The report however acknowledged it is unclear whether Iran was likely to accept the plan as a basis for negotiations but argued the delivery of the plan showed the administration is ramping up efforts to conclude the war.
Meanwhile, Iran has told the United Nations Security Council and the International Maritime Organization that "non-hostile vessels" may transit the Strait of Hormuz with Tehran's consent.
However, buying interest has been partly offset by a report from Iran's state-linked media Fars News Agency claiming Iran will not accept the ceasefire offer from the U.S.
"Iran does not accept the ceasefire, as basically, it is not logical to enter into such a process with the violators of the agreement," an informed source told Iran's state-linked media FARS News Agency. "
The Materials Capped Index climbed 3.6%. Ssr Mining, Hudbay Minerals, Silvercorp Metals, Aris Mining Corporation, Ngex Minerals, Centerra Gold and Equinox Gold Corp gained 6%-8%. Iamgold, Ivanhoe Mines, Taseko Mines, Kinross Gold, Seabridge Gold, Discovery Silver Corp., and Capstone Copper also moved up sharply.
Healthcare stocks Curaleaf Holdings and Bausch Health Companies climbed 2.85% and 2.5%, respectively. Chartwell Retirement Residences moved up 1.5%.
Among technology stocks Bitfarms, Blackberry, Firan Technology Group, Open Text Corporation, Celestica, Shopify and Kinaxis gained 2%-4%.
In the financials sector, Sprott climbed nearly 4%. Onex Corporation, Igm Financial, Power Corporation of Canada, EQB and Brookfield Corporation moved up 2%-3%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
