Canada’s main stock index found its legs again by the close on Wednesday as hopes of a de-escalation in the U.S.-China trade war firmed. Meanwhile, investors greeted the Federal Reserve’s interest rate decision with calm.
The TSX Composite Index climbed 186.46 points to close Wednesday at 25,161.18.
The Canadian dollar faded 0.32 cents at 72.29 cents U.S.
Prime Minister Mark Carney visited the White House on Tuesday for his first meeting with U.S. President Donald Trump and termed the discussion as constructive.
Trump told reporters the meeting was “great,” noting that he and Carney got along. However, he provided no details on any potential shifts in the trade policy between the two nations.
Meanwhile, Washington announced late on Tuesday that representatives of the U.S. and China will meet over the weekend in Switzerland for talks, which could lead to the first step in resolving a trade war disrupting the global economy.
Utilities led the parade of winners, as Brookfield Infrastructure grabbed 88 cents, or 2.1%, to $43.79, while Fortis climbed $1.31, or 1.9%, to $68.84.
In techs, Docebo muscled up $1.82, or 4.2%, to $45.26, while Dye & Durham gained 28 cents, or 3.2%, to $9.10.
In the industrial sector, Bombardier perked $3.04, or 3.7%, to $84.50, while MDA Ltd. picked up 66 cents, or 2.8%, to $24.64.
Barrick Mining reported first-quarter profit above estimates, driven by a rise in gold prices. The gold giant regained 32 cents in price, or 1.2%, to close the session at $26.85.
Gold stocks elsewhere were roughed up, however, as Iamgold doffed 58 cents, or 5.7%, to $9.60, while B2Gold shed a dime, or 2.3%, to $4.28.
It was also a tough day for materials, particularly Endeavour, down25 cents, or 5%, to $4.79, while Ivanhoe Mines pointed downward 78 cents, or 5.7%, to $12.78.
Telecoms were also drubbed, as BCE gave back 33 cernts, or 1.1%, to $29.38, while TELUS Corp. retreated 29 cents, or 1.4%, to $20.77.
ON BAYSTREET
The TSX Venture Exchange inched up 2.13 points to 667.68.
Eight of the 12 subgroups were higher by the end of the session, led by utilities, gaining 1% information technology, up 0.9%, while industrials strengthened 0.8%.
The four laggards were hampered most by gold and materials, each down 1.1%, while telecoms docked 0.6%.
ON WALLSTREET
The S&P 500 rose in choppy trading after the Federal Reserve signaled that the risks for an economic slowdown and higher prices are increasing.
The Dow Jones Industrials hiked 284.97 points to 41,113.97.
The broader index recovered 24.36 points to 5,631.27.
The NASDAQ Composite regained 48.5 points to 17,738.16.
As expected, the Federal Open Market Committee held its benchmark overnight borrowing rate in a range between 4.25% to 4.5%, where it has been since December.
Wednesday’s announcement coincides with increasing worries that a global trade war could send prices higher, complicate the central bank’s path toward bringing inflation down to its 2% goal.
Fed Chair Jerome Powell said during his post-decision press conference that if the “large increases in tariffs” that have been announced remain at their current levels, they could lead to a slowdown in economic growth, an uptick in long-term inflation and an increase in unemployment.
Stocks got a boost on news that U.S. Treasury Secretary Scott Bessent and top trade official Jamieson Greer would meet with their Chinese counterparts this week in Switzerland. Investors took that as a positive on the trade front after the turbulent market action following President Donald Trump’s tariff announcement last month.
A report from Bloomberg on Wednesday that the Trump administration plans to rescind Biden-era AI chip restrictions helped Nvidia shares rise about 2%.
Also pressuring the market were declines in Alphabet which sank about 8% and Apple, which dropped about 1.5%, after Apple’s services chief said the company is looking to add artificial intelligence services as search options in
Prices for the 10-year Treasury gained ground, lowering yields to 4.28% from Wednesday’s 4.31%. Treasury prices and yields move in opposite directions
Oil prices backpedaled $1.03 to $58.06 U.S. a barrel.
Prices for gold backed off $42.70 to $3,380.10 U.S.