North American stock markets rise after Trump confirms China trade deal in tact

North American stock markets rise after Trump confirms China trade deal in tact

TORONTO — The tech-heavy Nasdaq composite set new records Tuesday while other stock markets rose after U.S. President Donald Trump confirmed a trade deal with China remains intact.

Markets were headed for a rough day after White House trade adviser Peter Navarro suggested late Monday that the deal was in trouble, before Trump’s clarifying tweet.

“I think if anything it’s just a sign of the knife edge that the market is resting on,” said Craig Jerusalim, portfolio manager at CIBC Asset Management.

“It was ready to pull back sharply if Navarro’s comments were true and clearly after Trump’s all-clear the futures market recovered before equity markets opened up this morning so it was crisis averted on that front.”

The S&P/TSX composite index closed up 47.85 points at 15,564.75.

In New York, the Dow Jones industrial average was up 131.14 points at 26,156.10. The S&P 500 index was up 13.43 points at 3,131.29, while the Nasdaq composite climbed 74.89 points to a record close of 10,131.37 after hitting an intraday record of 10,221.85.

Nasdaq moved on increases from large-cap stocks including Apple Inc. which climbed more than two per cent to reach a new peak.

In Canada, Shopify Inc. tried to keep up, but gained $9 or 0.7 per cent while other tech names did better.

The sector benefited from Trump’s clamp-down on work visas.

“Canada’s tech sector is going to be the big beneficiary of some of those high-skilled workers coming to Canada instead,” Jerusalim said in an interview.

The TSX trailed U.S. markets because tech-related stocks make up a smaller part of the overall market in Canada.

Eight of the 11 major sectors on the TSX climbed, led by energy and materials. Energy gained nearly two per cent even though crude oil prices slipped, after surpassing US$41 a barrel.

Shares of MEG Energy Corp. and Whitecap Resources Inc. increased 7.8 and 6.6 per cent respectively.

The August crude contract was down 36 cents at US$40.37 per barrel and the August natural gas contract was down 4.7 cents at US$1.69 per mmBTU.

Materials was up 1.25 per cent as gold prices hit their highest level in nearly nine years.

The metal was helped by a lower U.S. dollar and it being a hedge against fears about a surge in COVID-19 cases in American cities.

“There is that big concern on the horizon being the reopening of the economy causing COVID case counts to increase … but right now people are cheering the potential for getting back to normal,” said Jerusalim.

The August gold contract was up US$15.60 at US$1,782.00 an ounce and the July copper contract was down 0.6 of a cent at nearly US$2.66 a pound.

He said markets move up because of a combination of low interest rates and the flow of money out of fixed income and cash that’s sitting on the sidelines into equities.

Grocers pushed consumer staples lower with Empire Co. Ltd. down 3.2 per cent, while industrials slipped on a 2.9 per cent drop in Air Canada shares a day after it again bolstered its liquidity position.

The Canadian dollar traded for 73.99 cents US compared with 73.83 cents US on Monday.

Economic data in Europe and the U.S. was mostly less bad with manufacturing and servicing PMI still contracting but on an improving trend.

U.S. housing sales, however, were strong and beat analyst expectations.

This report by The Canadian Press was first published June 23, 2020.

Companies in this story: (TSX:SHOP, TSX:MEG, TSX:WCP, TSX:AC, TSX:EMP.A, TSX:GSPTSE, TSX:CADUSD=X)

Ross Marowits, The Canadian Press

Business

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Comments are closed

Just Posted

57 new COVID-19 cases confirmed in Alberta on Friday

Central zone remains at three active cases

Three people arrested after failed escape ends in farmer’s field

Cole Joseph Obdam facing numerous charges for incident with police

Red Deer remains at two active COVID-19 cases

Alberta confirms 94 new cases over past two days

Some Central Albertans calling for mask wearing to become mandatory

A family physician from Didsbury supports the Masks4Canada movement

Sylvan Lake pastor retiring after 43 years of service

Pastor Bill Spangler has been at Sylvan Lake Seventh-Day Adventist Church for six years

PODCAST: Black Lives Matter in central Alberta Part 2

More insight into the Black Lives Matter movement of central Alberta

Protesters return to St. Louis area where couple drew guns

Protesters return to St. Louis area where couple drew guns

Heavy rain floods southern Japan, leaving over dozen missing

Heavy rain floods southern Japan, leaving over dozen missing

At Rushmore, Trump says protesters seek to ‘defame’ heroes

At Rushmore, Trump says protesters seek to ‘defame’ heroes

First Nations coalition rejects recommendation to lift Sen. Beyak’s suspension

First Nations coalition rejects recommendation to lift Sen. Beyak’s suspension

Canada restricts dealings with Hong Kong over new security law

Canada restricts dealings with Hong Kong over new security law

Man accused of ramming gate at Rideau Hall with truck faces multiple charges

Man accused of ramming gate at Rideau Hall with truck faces multiple charges

Hosting regular season MLB in Toronto “totally different ball game”

Hosting regular season MLB in Toronto “totally different ball game”

Siakam says he feels safe in Florida, despite explosion of COVID-19 cases

Siakam says he feels safe in Florida, despite explosion of COVID-19 cases

Most Read