Canadian Stocks Move Higher Amid Positive Business Sentiments

(RTTNews) - Canadian stocks climbed on Tuesday, supported by recent strong economic data, even as investors await potential trade deals between the US and its partners.

After opening slightly below yesterday's close, the benchmark S&P/TSX Composite Index turned lower only for an hour. Gaining momentum, the index then entered into positive territory where it reached an intra-day high of 27,396.49 in less than an hour before finally settling at 27,364.43, up by 47.43 (or 0.17%).

Canadian PM Mark Carney has been working hard to defend the country from the effects of tariff attack from the US over the past few weeks even as high-level talks for a suitable deal between two nations continue.

After asking his cabinet colleagues to explore measures for budgetary spending cuts and meeting First Nations leaders to allay their fears on Bill C-5, today Carney met Canada's premiers to discuss his ways to get a trade deal signed with the US.

US President Donald Trump had threatened the nation with an enormous 35% tariff on its imports to the US if a deal is not reached by August 1.

Carney stated today that Canada-US Trade Minister Dominic LeBlanc will be in Washington over the next few days to accelerate the process. He had acknowledged last week that some of the tariffs would stay even if a bilateral agreement is sealed between both the nations.

A Bank of Canada survey report released yesterday revealed that though Canadian business houses are cautious in their hiring plans and checking expansive investments in the current "trade-war" landscape, they see less chances of a "worst-case scenario." It also reported that the number of businesses planning well for recession has declined slightly.

Recent economic data revealed that inflation and job numbers have not fared poorly and the economy has not deteriorated badly as most of the impact from tariffs have been borne by steel, aluminum, and automobile sectors.

With no significant data released today, the economic calendar was void with no big earnings news from Canadian companies either.

The Bank of Canada has maintained the interest rate steady at 2.75% from April.

Not many investors expect a likely interest cut on July 30 when the central bank will review and announce its monetary policy decision as the most recent inflation report had revealed that prices increased by 1.9% - within the bank's target range. In addition, jobs data also had revealed an uptick in new jobs and a decline in jobless rates.

Investors are waiting to see the finalization of a trade deal between US and Canada to know the details of the agreements before taking further steps.

Major sectors that gained in today's trading were Materials (2.46%), Communication Services (0.76%), Energy (0.69%), and Consumer Discretionary (0.63%).

Among the individual stocks, Ivanhoe Mines Ltd (7.02%), Agnico Eagle Mines (4.23%), Wheaton Precious Metals Corp (4.08%), Rogers Communications Inc (1.78%), and Vermilion Energy Inc (3.57%) were the prominent gainers.

Major sectors that lost in today's trading were Industrials (0.19%), Consumer Staples (0.28%), Healthcare (0.79%), and IT (1.82%).

Among the individual stocks, Celestica Inc (4.38%), Shopify Inc (4.18%), Sienna Senior Living Inc (2.26%), and Empire Company Ltd (1.05%) were the notable losers.