Updates with morning prices
By Sukriti Gupta and Sanchayaita Roy
May 12 (Reuters) - Canada's main stock index 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 Toronto Stock Exchange's S&P/TSX composite index .GSPTSE rose 0.7% at 25,531.01 points, tracking gains in U.S. peers. The index hit over a three-month high earlier in the session.
The two biggest economies announced on Monday that the U.S. will cut the extra tariffs it imposed on Chinese imports in April to 30% from 145%, while Chinese duties on U.S. imports will reduce to 10% from 125%. The new measures will be effective for 90 days.
"Canadian markets can benefit from the big easing in trade tensions (as) it shows that the tariff war may be able to get resolved more quickly than people had previously thought", said Colin Cieszynski, chief market strategist at SIA Wealth Management.
The U.S.-Sino deal comes days after a U.S.-UK limited trade agreement, easing fears that U.S. President Donald Trump's reciprocal tariffs announced on April 2 would roil global trade and spark a worldwide recession.
Back home, Canadian Prime Minister Mark Carney's new cabinet will be sworn in on Tuesday.
On TSX, energy .SPTTEN stocks gained 3.1%, tracking a jump in oil prices, while information and technology stocks .SPTTTK advanced 4.1%.
On the flip side, mining stocks .GSPTTMT fell nearly 4% after safe-haven gold fell more than 2%.
Pan American Silver PAAS.TO fell 14.1% after the miner plans to acquire MAG Silver Corp MAG.TO in a transaction that values the silver mining company at about $2.1 billion. Conversely, MAG Silver rose 7.2%.
Hudbay Minerals HBM.TO jumped 8.8% after the miner beat first-quarter profit and revenue estimates. Shares also rose on the back of higher copper prices.
(Reporting by Sanchayaita Roy and Sukriti Gupta in Bengaluru; Editing by Vijay Kishore)
((Sanchayaita.Roy@thomsonreuters.com;))
Comments