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

Just Posted

Alberta Health Services' central zone jumped from 162 active COVID-19 cases to 178 on Friday. Five additional deaths were reported provincewide, bringing the toll to 323. THE CANADIAN PRESS/Graham Hughes
622 new COVID-19 cases set another daily high Friday

Province confirmed 622 additional cases Friday

City of Wetaskiwin Mayor presenting the AUMA Above & Beyond Award to John Maude and Susan Quinn. Ren Goode/ City of Wetaskiwin.
Wetaskiwin County residents win the AUMA Above & Beyond Award

John Maude and Susan Quinn are being recognized for their role in Wetaskiwin’s sustainability.

Alberta children whose only symptom of COVID-19 is a runny nose or a sore throat will no longer require mandatory isolation, starting Monday.
477 new COVID-19 cases confirmed in Alberta on Thursday

Changes being made to the COVID-19 symptom list for school-age children

There were 410 COVID-19 cases recorded in Alberta Wednesday. (File photo)
Alberta records 410 COVID-19 cases Wednesday

Central zone dropped to 160 active cases

Shaun Isaac, owner of Woodchucker Firewood in Trochu, is awaiting a new shipment during a firewood shortage in the province. All of the wood he has left is being saved for long-time customers who need it to heat their homes. (Contributed photo).
Firewood shortage in central Alberta caused by rising demand, gaps in supply

‘I’ve said “No” to more people than ever’: firewood seller

Conservative leader Erin O’Toole rises during Question Period in the House of Commons in Ottawa on Wednesday October 28, 2020. (Adrian Wyld/The Canadian Press)
Conversion therapy ban gets approval in principle, exposes Conservative divisions

Erin O’Toole himself voted in favour of the bill, as did most Conservative MPs

Pilots Ilona Carter and Jim Gray of iRecover Treatment Centres, in front of his company’s aircraft, based at Ponoka’s airport. (Perry Wilson/Submitted)
95-year-old Ilona Carter flies again

Takes to the skies over Ponoka

Children’s backpacks and shoes are seen at a daycare in Langley, B.C., on Tuesday May 29, 2018. Alberta Children’s Services Minister Rebecca Schulz says the province plans to bring in a new way of licensing and monitoring child-care facilities. THE CANADIAN PRESS/Darryl Dyck
Alberta proposes legislation to change rules on child-care spaces

Record-keeping, traditionally done on paper, would be allowed digitally

Prime Minister Justin Trudeau shakes hands with US Vice-President Joe Biden on Parliament Hill in Ottawa on Friday, December 9, 2016. THE CANADIAN PRESS/ Patrick Doyle
A Biden presidency could mean good news for Canadian environment policy: observers

Experts and observers say even a U.S. outside the Paris agreement may ultimately end up in the same place

People take a photo together during the opening night of Christmas Lights Across Canada, in Ottawa, on Wednesday, Dec. 4, 2019. The likelihood that most Canadians will enjoy a holly jolly Christmas season of gatherings, caroling and travel is unlikely, say public health experts who encourage those who revel in holiday traditions to accept more sacrifices ahead. THE CANADIAN PRESS/Justin Tang
Ho, ho, no: Experts advise preparing for a scaled-back COVID holiday season

Many of the holiday season’s highlights have already been scrapped or are unlikely to take place

Sen. Kim Pate is shown in Toronto in an October 15, 2013, file photo. The parliamentary budget office says a proposed law that would give judges discretion on whether to apply a lesser sentence for murder could save the federal government $8.3 million per year. THE CANADIAN PRESS/Colin Perkel
Judicial discretion for mandatory minimum sentences for murder would save $8.3M: PBO

The result would be fewer people in long-term custody at federal correctional institutions, experts say

Husky Energy logo is shown at the company’s annual meeting in Calgary on May 5, 2017. THE CANADIAN PRESS/Jeff McIntosh
Husky pipeline spills 900,000 litres of produced water in northwestern Alberta

The energy regulator says environmental contractors are at the site

Most Read