Trade Agreement Boosts Stocks

Stocks in Canada’s largest centre rose on Monday as the United States and China reached a deal to reduce tariffs, boosting investor optimism and easing fears of an all-out trade war disrupting global markets.

The TSX Composite Index retained gains of 144.07 points to break for lunch Monday at 25,501.81

The Canadian dollar was off 0.38 cents at 71.48 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 U.K.'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 $5.35, or 14.1%, to $32.55, 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 $1.91, or 8.1%, to $25.49.

Hudbay Minerals jumped $1.03, or 9.6%, to $11.73 after the miner beat first-quarter profit and revenue estimates. Shares also rose on the back of higher copper prices.

ON BAYSTREET

The TSX Venture Exchange tunneled 7.27 points, or 1.1%, to 676.13.

Seven of the 12 subgroups were higher midday, led by information technology, up 4%, energy, rumbling 2.4%, and health-care, haler by 2.2%.

The five laggards were burdened most by gold, tumbling 6.7%, materials, off 4.2%, while consumer staples were lower 1.1%.

ON WALLSTREET

U.S. stocks rallied Monday after the U.S. and China agreed to temporarily slash tariffs following negotiations over the weekend in Switzerland.

The Dow Jones Industrials screamed higher 864.94 points, or 2.1%, to 42,114.32.

The S&P 500 index hiked 139.23 points, or 2.5%, to 5,799.14

The NASDAQ Composite flew 607.09 points, or 3.4%, to 18,536.

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.

Best Buy, which sells electronics and appliances vulnerable to tariffs, popped 7%. Dell Technologies gained 7% and On Semiconductor climbed 9%. Amazon advanced more than 7%, and Apple jumped 6%.

Prices for the 10-year Treasury eased, raising yields to 4.44 from Friday’s 4.39%. Treasury prices and yields move in opposite directions

Oil prices gained $1.26 to $62.28 U.S. a barrel.

Prices for gold sank $99.10 to $3,244.90 U.S.