Renewed optimism of a potential China/U.S. trade deal coupled with strong showings from Canada’s largest railway companies helped the TSX chug into the green today.
After triple digit losses yesterday, Canada’s stock exchange gained 172 points, spearheaded by the industrials sector which rose 2.6 percent.
Canadian National Railway jumped 3.7 percent, while Canadian Pacific Railway moved up 3.8 percent.
Canadian National’s stock moved up after the company announced that it acquired Winnipeg-based The TransX Group of Companies, one of Canada’s largest and oldest transportation companies.
The financials and health care sectors also rallied from Monday’s losses.
Financials was up by half a percent while health care jumped 1.7 percent, led by a rise in cannabis stocks.
Aurora Cannabis, Aphria, and Canopy Growth traded higher today after spiraling since marijuana was legalized in Canada on Oct. 17.
Lifting markets on Bay Street and Wall Street were comments from U.S. President Donald Trump, who spoke of a potentially “great deal” between the U.S. and China.
However, Trump also said he is “waiting to go” regarding imposing an additional $267 billion worth of tariffs on China if a deal can’t be reached.
Also bouncing back was the Dow which gained 431 points, lifted by strong Q3 earnings results from Coca Cola and MasterCard.
Market movers Boeing, Caterpillar, Intel, Walmart, and Home Depot also outperformed, providing some relief for the Dow which has lost 6.9 percent this month. According to CNBC, this marks the index’s worst performance since May 2010.
The Nasdaq also climbed in late day trading, jumping 111 points with gains in Intel, Alphabet and Comcast offsetting drops in Microsoft, Tesla, Netflix and Amazon.
Oil lost another 59 cents to $65.45 US a barrel on reports of rising supply and speculation about how the U.S./China trade war could deepen demand.
The loonie was flat, inching 10/100ths of a cent higher to $0.7623 US while gold lost $2.50 to $1,225 an ounce.