Canada’s main stock index opened higher on Tuesday, helped by gains in industrials stocks, though investors remained cautious due to an escalating trade war between the U.S. and China.
The TSX recovered 152.79 points to begin Tuesday at 25,394.55.
The Canadian dollar hiked 0.28 cents at 69.63 cents U.S.
On Monday, domestic investors were relieved after Trump suspended steep tariffs on Mexico and Canada, agreeing to a 30-day pause in exchange for concessions on border and crime enforcement with the two neighboring countries.
The deal temporarily averted a trade war that economists warned could harm all involved economies and lead to higher consumer prices.
In corporate news, financial services company TMX Group on Tuesday reported fourth-quarter profit and revenue above estimates.
TMX shares spiked $2.98, or 6.6%, to $48.25.
ON BAYSTREET
The TSX Venture Exchange regained 6.73 points, or 1%, to 627.10.
All but two of the 12 subgroups were in the green during the first hour. Energy and health-care each pointed higher by 1.1%, while materials gained 0.8%.
The two laggards proved to be gold, down 0.3%, and utilities, off 0.2%.
ON WALLSTREET
The NASDAQ Composite and S&P 500 moved higher on Tuesday thanks to a strong gain in Palantir, as Wall Street tries to find stable footing following the latest developments on the global trade front.
Shares in the Dow Jones Industrials edged up 13.03 points to 44,434.97.
The much-broader index pointed higher 32.44 points to 6,027.01
The NASDAQ flew 225.79 points, or 1.2%, to 19,617.73.
Palantir shares popped 26% on fourth-quarter results that beat analyst expectations and had hit a fresh record high during the session.
The Chinese government slapped tariffs of up to 15% on U.S. imports of coal and liquefied natural gas and 10% higher duties on crude oil, farm equipment and selected cars, effective Feb. 10.
The move comes after the U.S. agreed to pause more aggressive levies on Canada and Mexico. Canadian Prime Minister Justin Trudeau announced in a post on social media site X on Monday evening that Trump agreed to halt the implementation of tariffs against Canada for at least 30 days.
Earlier on Monday, Mexican President Claudia Sheinbaum announced that duties on Mexico imports to the U.S. would also be halted for a month.
Prices for the 10-year Treasury slid, raising yields to 4.55% from Tuesday’s 4.54%. Treasury prices and yields move in opposite directions.
Oil prices decreased 25 cents to $72.91 U.S. a barrel.
Prices for gold gained $16.30 an ounce to $2,873.40 U.S.
