Canada's main stock index opened higher on Tuesday, with miners leading gains as easing Middle East tensions lifted sentiment, while investors awaited the Bank of Canada's rate decision on Wednesday.
The TSX Composite Index zoomed 235.49 points to begin Tuesday at 34,714.23.
The Canadian dollar inched up 0.12 cents to 71.66 cents U.S.
Iran and Israel halted attacks on each other, but caution lingered as talks between Washington and Tehran have yet to yield a lasting deal and the Strait of Hormuz remains closed.
Back home, investors awaited a Bank of Canada interest rate decision on Wednesday. The central bank was expected to leave its benchmark interest rate on hold at 2.25% for a fifth straight meeting, according to a majority of economists polled by Reuters.
Meanwhile, Prime Minister Mark Carney is pushing to diversify trade beyond the United States, but Canada's appeal to global partners still hinges on tariff-free access to the U.S. market through the USMCA agreement.
On the economic slate, Statistics Canada reports this morning that in April, Canada's merchandise exports increased 1.6%, while imports edged up 0.3%. As a result, Canada's merchandise trade surplus with the world widened from $1.8 billion in March to $2.7 billion in April.
ON BAYSTREET
The TSX Venture Exchange recovered 5.57 points to 953.48.
All but one of the 12 TSX subgroups prospered, led by consumer discretionaries, ahead 1.3%, health-care, up 1.2%, materials, ahead 1.1%.
Only energy failed to see the sun, losing 2%.
ON WALLSTREET
U.S. equities rose on Tuesday as chip stocks rebounded for a second day from last Friday’s rout and oil prices pulled back on hopes a U.S.-Iran deal is nearing.
The Dow Jones Industrials picked up 158.64 points to 50,944.68.
The S&P 500 moved up 5.73 points to 7,411.46.
The tech-heavy NASDAQ settled 55.41 points to 25,875.26.
Micron Technology was higher by almost 2%, adding to a 10% comeback on Monday. The shares tumbled about 20% in two days last week, including a 13% rout on Friday.
Broadcom, which had an equally steep two-day drop last week, was also higher extending its Monday rebound.
OpenAI confidentially filed for an IPO late Monday, adding to enthusiasm around the AI trade. Space and AI play SpaceX is set to make its debut on Friday in what will be the largest IPO ever. The offering is seen by some as adding fuel to the AI-driven bull market, but some investors are wary that it could also mark a top in the trend with its $1.75 trillion valuation.
Prices for the 10-year Treasury moved upward, lowering yields to 4.54% from Monday’s 4.57%. Treasury prices and yields move in opposite directions.
Oil prices lost $3.50 to $87.80 U.S. a barrel.
Gold prices lost $11.90 to $4,351.50 U.S. an ounce.
