Canada's main stock index opened higher on Thursday, as investor nerves eased after U.S. President Donald Trump walked back tariff threats against European allies and ruled out using force to acquire Greenland.
The TSX index soared 101.1 points to lead off Thursday at 32,952.63.
The Canadian dollar took on 0.15 at 72.39 cents U.S.
Earlier, in a speech at the World Economic Forum in Davos, Switzerland, the president also ruled out using military force to take over the Danish territory.
In corporate news, railway firm Canadian Pacific Kansas City said on Wednesday that it will buy 30 additional Tier 4 locomotives from Progress Rail this year as part of an $800-million commitment to invest in U.S. businesses. CP shares captured 72 cents to $100.37.
On the economic scene, the New Housing Price Index decreased 0.2% in December, in comparison with an unchanged reading the month before.
ON BAYSTREET
The TSX Venture Exchange roared ahead 25.41 points, or 2.3%, to 1,120.03.
All but three of the 12 TSX subgroups were gaining ground, led by gold, up 2.4%, materials, ahead 1.9%, and health-care, haler 1.5%.
The three laggards were information technology, down 2.1%., while energy faded 1.2%, and financials gave back 0.1%.
ON WALLSTREET
Stocks rose Thursday after easing geopolitical fears sparked a broad-based market rally. Traders also looked ahead to a key inflation reading due in the morning.
The Dow Jones Industrials barreled ahead 360.31 points to 49,437.54.
The S&P 500 picked up 41.7 points to 6,917.32.
The NASDAQ raced ahead 211.51 points to 23,436, supported by gains in Nvidia, Microsoft and Meta Platforms.
Trump, who has been relentlessly pushing for U.S. control of Greenland in recent weeks, said Wednesday on Truth Social that he and NATO Secretary General Mark Rutte have “formed the framework of a future deal with respect to Greenland.” The president later told reporters that “we have a concept of a deal” with the Arctic island.
Stocks were already rising after the U.S. president earlier said in a speech at the World Economic Forum in Davos, Switzerland, that he would not move to acquire Greenland by force. The S&P 500 ended the day up more than 1%, and the 30-stock Dow surged almost 600 points, or more than 1%. The tech-heavy NASDAQ also advanced more than 1%.
While equities rose in the wake of the deal “framework” announcement, the situation appears far from over. On Thursday, Danish Prime Minister Mette Frederiksen viewed Trump’s discussion on Arctic security with Rutte as “good and natural” and said that the country is ready to hold talks with the U.S. on its “Golden Dome” missile defense plan. However, she stressed that sovereignty is non-negotiable.
Prices for the 10-year Treasury withered, raising yields to 4.27%, from Wednesday’s 4.25%. Treasury prices and yields move in opposite directions.
Oil prices skidded $1.06 to $59.56 U.S. a barrel.
Gold prices leaped $26.20 to $4,863.70.
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