Equities in Canada’s largest lifted themselves Monday, on word the tension between the U.S. and China may be relaxing
The TSX Composite Index retained gains of 174.44 points to close Monday at 25,532.18
The Canadian dollar was off 0.26 cents at 71.54 cents U.S.
Following weekend talks in Geneva, the two largest economies announced on Monday that the U.S. will reduce the extra tariffs it imposed on Chinese imports in April to 30% from 145%, and Chinese duties on U.S. imports will drop to 10% from 125%. The new measures will be effective for 90 days.
The U.S.-Sino deal comes days after the United States and the UK’s limited trade agreement that signaled an easing of tariff-related uncertainty.
Back home, Prime Minister Mark Carney’s new cabinet will be sworn in on Tuesday.
In corporate news, mining stocks fell nearly 4% after safe-haven gold fell more than 2%.
Pan American Silver fell $6.01, or 15.9%, to $31.89, after the miner plans to acquire MAG Silver Corp in a transaction that values the silver mining company at about $2.1 billion. Conversely, MAG Silver rose $1.53, or 6.5%, to $25.11.
Hudbay Minerals jumped 96 cents, or 8.9%, to $11.66 after the miner beat first-quarter profit and revenue estimates. Shares also rose on the back of higher copper prices.
Techs led the gainers, with Shopify soaring $18.02, or 14.1%, to $146.00, while Celestica zoomed $10.64, or 8.2%, to $140.33.
In health stocks, Tilray took on five cents, or 8.5%, to 64 cents, or Bausch Health Companies gained 31 cents, or 4.9%, to $6.69.
In energy, Nuvista Energy captured 78 cents, or 8.5%, to 6.2%, to $13.28, while Pason Systems picked up 59 cents, or 5.3%, to $11.70.
Gold let the side down, though, as Iamgold stumbled 98 cents, or 10%, to $8.80, while Lundin Gold gave back $11.90 cents, or 17.6%, to $55.89.
In materials, Agnico Eagle Mines parted with $14.67, or 9%, to $148.83.
In consumer staples, Loblaw Companies shed $4.28, or 2%, to $213.89, while George Weston sank $4.89, or 1.9%, to $257.89.
ON BAYSTREET
The TSX Venture Exchange tunneled 8.42 points, or 1.2%, to 674.98.
Seven of the 12 subgroups were higher by the close, led by information technology, up 5.4%, health-care, galloping 3%, and energy, rumbling 2.9%.
The five laggards were burdened most by gold, tumbling 7.6%, materials, off 4.9%, while consumer staples were lower 1.2%.
ON WALLSTREET
U.S. stocks roared back on Monday after the U.S. and China agreed to temporarily slash tariffs following negotiations over the weekend in Switzerland, raising hopes a trade war won’t push the economy into a recession.
The Dow Jones Industrials screamed higher 1,160.72 points, or 2.8%, to 42,410.10.
The S&P 500 index hiked 184.26 points, or 3.3%, to 5,844.20. The benchmark has cut its year-to-date losses to just 0.6%.
The NASDAQ Composite popped 779.43 points, or 4.4%, to 18,708.34, as the initial China agreement sent technology stocks tied to the country — like Tesla and Apple — flying higher. It was the best day since April 9 for all three indexes.
Tesla jumped 6%, while Apple and Nvidia gained 6% and 5%. Shares of companies that rely the most on Chinese goods rallied the most. Best Buy popped 6%, Dell Technologies climbed 8% Amazon advanced 8%.
Defensive stocks where investors hid out during the tariff turmoil were lower on Monday. Coca-Cola and Philip Morris shed 2% apiece. AT&T lost 3%.
Treasury Secretary Scott Bessent said on Monday that talks with China had been “very productive” and both countries had agreed to cut “reciprocal” tariffs by 115% for 90 days. That brings U.S. tariffs on Chinese goods down to 30%, and Chinese tariffs on U.S. imports to 10%.
Bessent told the media on Monday that he expects to meet once again with representatives from Beijing in the “next few weeks” to iron out a bigger agreement.
Prices for the 10-year Treasury eased, raising yields to 4.47% from Friday’s 4.39%. Treasury prices and yields move in opposite directions
Oil prices gained 80 cents to $61.82 U.S. a barrel.
Prices for gold sank $104.40 to $3,239.60 U.S.