S&P/TSX composite up more than 250 points, U.S. stocks rise for third day
TORONTO - Canada's main stock index rose more than 250 points in a broad-based rally led by base metals, while U.S. stock markets also climbed to close out a third straight day of gains.
The S&P/TSX composite index closed up 254.85 points, or just over one per cent, at 24,727.53.
In New York, the Dow Jones industrial average was up 486.83 points or 1.2 per cent at 40,093.40. The S&P 500 index was up 108.91 points or two per cent at 5,484.77, while the Nasdaq composite was up 457.99 points or 2.7 per cent at 17,166.04.
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Investors continue to be focused on tariffs, said Allan Small, senior investment adviser at iA Private Wealth.
Though there were no new tariff announcements Thursday, markets appear to be grasping onto some hope that the U.S. is open to negotiating the duties, said Small.
'It's a good thing because now the market is saying, okay, at least there's a realization that the status quo is not acceptable. Something is going to happen, and more than likely some sort of deal will happen, and any deal is better than where we sit now,' he said.
China denied it's actively negotiating with the U.S. over tariffs Thursday. The two countries rapidly ramped up their trade war after Trump announced sweeping global tariffs.
But even though China denied the talks, investors still appear cautiously optimistic, said Small, noting that Trump seems to be softening his stance on trade after the fallout from his policies so far, with North American indexes down significantly year to date.
'I think the bond market is telling him something. I think the stock market is telling us something … I think the economy is speaking loud and clear,' he said.
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Adding to the three-day run for markets is a good start to earnings season in the U.S., said Small: 'There's a lot to digest.'
Earnings reports so far have been positive, he said, though he noted they should be taken with a grain of salt given they largely cover the time before tariffs were enacted. Some companies likely rushed to boost their exports and imports during the first quarter ahead of tariffs, he added.
Meanwhile, executives have been cautious as they speak with analysts about their results. Southwest Airlines and American Airlines both reported stronger profits than expected but pulled some financial forecasts due to the uncertainty.
The Canadian dollar traded for 72.18 cents US, according to XE.com, compared with 72.09 cents US on Wednesday.
The June crude oil contract was up 52 cents US at US$62.79 per barrel and the June natural gas contract was down six cents US at US$3.10 per mmBTU.
The June gold contract was up US$54.50 at US$3,348.60 an ounce and the May copper contract was up a penny US at US$4.85 a pound.
With files from The Associated Press
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