CLOSING BELL: Markets rebound, but stumble late, as U.S. softens China rhetoric
North American markets bounced back early today, but stumbled near the finish line.
The boosts came as the White House softened its position on China, and Bay Street investors liked what they saw in the Bank of Canada’s spring Business Outlook Survey. The survey showed business sentiment remains positive, even with the recent tensions. The report will play a big part in the BoC’s decision on whether to raise its interest rate.
The TSX had been up more than 100 points, but closed at 15,227, up just 20 points, as gains in the financial sector were weighed down by Kinder Morgan Canada losses.
On Wall Street things got a big boost from the technology sector and on the back of U.S. President Donald Trump’s top economic advisor, Larry Kudlow, telling CNBC a trade dispute with China could be settled with negotiations. However there was a flurry of late selling that tempered the market. The Dow Jones closed at 23,979, a gain of just 46 points, after being up more than 300 points earlier.
There won’t be a new NAFTA deal this week, but there could be one very soon. In a television interview today Mexico’s Secretary of Economy said there’s an 80 per cent chance of an agreement by May.
At press time oil is up $1.24 to $63.30 U.S. per barrel, gold is up $4.70 to $1340.80 an ounce, and the loonie is up more than half a cent, to 78.66 cents U.S.