The U.S. dollar gained and equity markets around the world jumped on Thursday as fears eased of a trade war between China and the United States after Washington expressed a willingness to negotiate.
The dollar rose to a three-week high against the Japanese yen and a 10-week peak versus the Swiss franc, two safe-haven assets that investors buy in times of market uncertainty.
U.S. Treasury yields rose to one-week highs as risk appetite returned with the reduced fears of a trade war and on expectations that a growing economy will be confirmed on Friday when the closely watched U.S. employment report for March is released.
Canada’s main stock index rebounded on Thursday from a nearly eight-week low the day before, as ebbing trade tensions helped boost energy and financial shares.
The Toronto Stock Exchange’s S&P/TSX composite index unofficially closed up 191.68 points, or 1.26 per cent, at 15,356.05. Eight of the index’s 10 main groups ended higher.
TSX just shy of erasing its weekly losses so far.
Darryl White, Bank of Montreal’s chief executive, says he is confident that talks to revamp NAFTA will lead to “positive conclusion.”
Canadian Foreign Minister Chrystia Freeland said on Wednesday that the three countries had made good progress in the talks but there was still work to be done.
Suncor Energy Inc. gained 4.7 per cent and Canadian Natural Resources Ltd. advanced 4.1 percent, boosting the energy sector by 4.2 per cent. Encana Corp. jumped 4.3 per cent, while Cenovus Energy Inc. was up 4.1 per cent.
Heavyweight financial stocks rose 0.9 per cent, led a 2-per-cent jump by Canadian Western Bank and 1.9-per-cent increase by Laurentian Bank of Canada. Bank of Montreal and Bank of Nova Scotia rose 1 per cent.