TSX Ends Modestly Higher
(RTTNews) - The Canadian stock market got off to a buoyant start Monday morning, and despite paring some gains as the session progressed, managed to close on a positive note, as U.S.-China trade tensions eased amid possible resumption of talks.
The U.S., Canadian and European markets had tumbled on Friday after U.S. President Donald Trump sent out a strong message through Twitter that U.S. companies should shun Chinese firm and start looking elsewhere, after China announced tariffs on about $75 billion worth of American goods. The U.S. later hiked tariffs on over $550 billion worth of Chinese products.
But tensions eased Monday morning after Trump told reporters on the sidelines of the G7 summit in France that top Chinese officials had called asking for the resumption of trade talks.
Consumer discretionary and information technology stocks posted strong gains and helped keep the Canadian benchmark in positive territory. Energy stocks retreated after crude oil futures gave up early gains.
A few stocks from consumer staples, financial, industrial and healthcare sections posted notable gains. Materials turned sluggish after showing some strength early on in the session.
The benchmark S&P/TSX Composite Index ended up 61.21 points, or 0.38%, at 16,098.79, well off the day's high of 16,167.48. The index touched a low of 16,069.91 in the session.
In the consumer discretionary space, Brp Inc. (DOO.TO) gained about 2.5%, Canadian Tire Corporation (CTC.A.TO) and Magna International (MG.TO) gained 2% each, and Restaurant Brands International (QSR.TO) advanced 1.75%. Great Canadian Gaming Corp (GC.TO) and Dollarama (DOL.TO) ended higher by 1.3% and 1.1%, respectively.
Among information technology shares, Photon Control (PHO.TO) soared nearly 10%.
Shopify Inc. (SHOP.TO) and Quarterhill Inc. (QTRH.TO) gained 3.1% and 2.3%, respectively.
In the energy space, Encana Corp (ECA.TO) gained 2% and Enerflex (EFX.TO) advanced 1.3%. Canadian Natural Resources (CNQ.TO), Imperial Oil (IMO.TO) and Cenovus Energy (CVE.TO) ended nearly 1% up.
Among miners, Teck Resources (TECK.B.TO), Ero Copper (ERO.TO), Nutrien (NTR.TO) and Ivanhole Mines (IVN.TO) gained 1.1% - 2.2%.
In the banking space, Canadian Western Bank (CWB.TO) gained 2.3%. Bank of Montreal (BMO.TO), National Bank of Canada (NA.TO) and Toronto-Dominion Bank (TD.TO) ended with modest gains.
Among the stocks in the Healthcare Index, Aurora Cannabis (ACB.TO) and Cronos Group (CRON.TO) gained 2.1% and 1.5%, respectively.
On the other hand, Canntrust Holdings (TRST.TO) and Aphria (APHA.TO) declined 4.4% and 3.7%, respectively.
Trump told reporters at the G-7 summit in France that top Chinese officials had called asking for the resumption of trade talks.
However, Chinese Foreign Ministry spokesman Geng Shuang said he was not aware of any call between U.S. and Chinese officials and Trump refused to provide details.
China's Vice Premier Liu He remarked that Beijing is ready to solve the problem through consultation and cooperation with a calm attitude.
U.S. stocks ended on a firm note, reacting to Trump's positive comments on U.S.-China trade.
The Dow and the S&P 500, both gained 1.1%, while the Nasdaq advanced 1.3%.
European stocks came off early lows, but ended mixed with investors looking for clear signals to emerge on the trade front. Markets also digested the latest batch of euro area economic data.
In commodities, West Texas Intermediate crude oil futures for October ended down $0.53, or about 1%, at $53.64 a barrel.
Gold futures rose to $1,555.23, the best level since April 2013, but retreated as the day progressed to eventually settle at $1,537.20 with a small $0.40 loss.
Silver futures for ended up $0.227 at $17.641 an ounce, while Copper futures for September settled at $2.5435 per pound, up $0.0135 from previous close.