TSX Leaps at Open
Markets in this country opened higher, boosted by consumer discretionary shares, as investors welcomed a milder-than-expected U.S. inflation report, while signs of progress in U.S.-China trade relations also helped sentiment.
The TSX Composite Index vaulted 123.58 points to open the mid-week session at 26,549,89.
The Canadian dollar nudged higher 0.03 cents to 73.18 cents U.S.
In corporate news, WSP Global said on Wednesday that it would acquire British environmental and engineering consulting firm Ricardo for about 363.1 million pounds ($489.6 million U.S.) including debt.
Late on Tuesday, U.S. and Chinese officials ended two days of trade negotiations in London with pledges to revive an agreement struck last month in Geneva and remove China's export restrictions on rare earths - a sticking point in that deal.
The new agreement will be taken back to the leaders of the two countries for approval.
In the economic arena, Statistics Canada said in April, the total value of building permits issued in Canada decreased by $829.6 million (-6.6%) to $11.7 billion.
ON BAYSTREET
The TSX Venture Exchange recovered 6.2 points to 723.50.
All but three of the 12 TSX subgroups gained ground, led by consumer discretionary issues, jumping 2.7%, information technology, up 1.6%, and energy, better by 0.7%.
The three laggards were consumer staples and industrials, each down 0.3%, while utilities slid 0.2%.
ON WALLSTREET
Stocks in the U.S. enjoyed healthy gains on Wednesday, renewing a comeback rally, the result of softer-than-expected U.S. inflation data, and the U.S. and China reaching the preliminary outline of a possible trade agreement.
The Dow Jones Industrials gained 143.52 points to 43,010.39.
The S&P 500 index added 17.34 points to 6,056.15. The much broader index rose in six of the last seven trading days and was less than 2% below a record reached in February. At one point, the benchmark index was about 20% below a record.
The NASDAQ Composite improved 78.2 points to 19,793.19.
The consumer price index rose 0.1% in May from April, less than the 0.2% estimate from economists polled by Dow Jones. Core CPI, which strips out volatile food and energy prices, also increased 0.1%, less than expected.
U.S. and Chinese officials reached a consensus after a round of talks in London. As part of the framework, China would approve the exports of rare earth minerals while the U.S. would roll back restrictions on the sale of advanced technology to China.
President Donald Trump said in a Truth Social post on Wednesday that the deal with China is “done, subject to final approval with President Xi and me”. He added that “WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%.”
As part of the trade agreement, he said that magnets and “any necessary rare earths” will be supplied up front by China and the U.S. will allow Chinese students to attend U.S. colleges and universities. The prospect of opening up China to American trade is “a great WIN for both countries,” Trump said in the post.
Prices for the 10-year Treasury gained, lowering yields to 4.45% from Tuesday’s 4.47%. Treasury prices and yields move in opposite directions.
Oil prices added $1.60 to $66.58 U.S. a barrel.
Gold prices brightened $12.30 to $3,355.90 U.S. an ounce.
