Canadian Stocks Rise As Optimism On Trade Talks Holds On

(RTTNews) - Canadian stocks moved higher on Tuesday as investors were optimistic of a Canada-US deal sooner or later despite the apparent disinterest displayed by the US President on the progress of negotiations.

After opening higher than yesterday's close, today the benchmark S&P/TSX Composite Index hit the day's high within minutes before later traveling lower until pre-noon. However, it gathered momentum to move up and finally settled at 27,539.88, up by 134.46 points (or 0.49%).

With the crucial deadline set by the US for the "reciprocal tariffs" suspension period ending this Friday, countries are hustling to strike a mutually agreeable pact with the US on trade front.

US President Donald Trump announced a tariff framework pact with EU last Sunday after having finalized one with Japan last week. China and the US have engaged in intense trade talks in Sweden to formulate a broad-structured deal.

However, with regard to trade talks with Canada, last Friday, Trump nonchalantly stated, "Canada may not have negotiations but only tariffs".

Canada is likely to suffer a 35% tax on most of its exports to the US if a deal is not reached in the next two days. Already, its steel and aluminum business houses are bearing the brunt of around 50% tariffs imposed by the US. Reportedly, Canadian aluminum smelters have turned their attention away from the US.

Though PM Mark Carney stated that an agreement with the US without tariffs is unlikely, he had reassured the nation that he would not sign a deal that is against the interests of domestic business houses.

Carney's team is busy in the US to iron out the creases before striking a framework agreement. Traders are awaiting a breakthrough on this.

The Bank of Canada is taking a call on interest rate tomorrow. With the current lending costs hovering at 2.75%, the odds for more cuts though remain slim.

In the US, the Federal Reserve's meeting to decide monetary policy is underway. Economists have shrugged off any chances of a rate cut as they believe the inflation and job numbers so far are not satisfactorily enough to convince the Fed Chair for lowering the borrowing costs.

Major sectors that gained in today's trading were IT (2.17%), Real Estate (1.74%), Healthcare (1.57%), and Materials (1.19%).

Among the individual stocks, Celestica Inc Sv (16.92%), Quarterhill Inc (3.15%), Colliers International Group (6.60%), and Chartwell Retirement Residences (3.42%) were the prominent gainers.

Major sectors that lost in today's trading were Utilities (0.58%), Communication Services (0.25%), and Consumer Discretionary (0.28%).

Among the individual stocks, Cogeco Communications (0.89%), Rogers Communications (0.47%), Magna International Inc (2.06%), and Aritzia Inc (1.31%) were the notable losers.