Tariff Pause Hikes Sentiment, TSX Gains

Equities in Canada’s largest market rebounded on Tuesday led by energy stocks, as U.S. President Donald Trump's decision to temporarily pause tariffs on Ottawa kept the overall sentiment upbeat.The TSX climbed 121.8 points to reach midday Tuesday at 25,363.56.The Canadian dollar hiked 0.49 cents at 69.84 cents U.S. On Monday, domestic investors were relieved after Trump suspended steep tariffs on Mexico and Canada, agreeing to a 30-day pause in exchange for concessions on border and crime enforcement with the two neighboring countries.The deal temporarily averted a trade war that economists warned could harm all involved economies and lead to higher consumer prices.In corporate news, financial services company TMX Group on Tuesday reported fourth-quarter profit and revenue above estimates. TMX shares spiked $3.31, or 7.3%, to $48.58.ON BAYSTREET The TSX Venture Exchange regained 9.6 points, or 1.6%, to 630.27.All but three of the 12 subgroups gained by noon EST. Consumer staples surged 1.2%, energy pointed higher by 1.1%, while communications gained 0.9%. The three laggards proved to be gold, down 0.9%, while financials and utilities were each off 0.2%. ON WALLSTREET The NASDAQ Composite and S&P 500 moved higher on Tuesday thanks to a strong gain in Palantir, as Wall Street tries to find stable footing following the latest developments on the global trade front.Shares in the Dow Jones Industrials edged up 19.59 points to 44,441.50.The much-broader index pointed higher 34.93 points to 6,029.50The tech-heavy NASDAQ flew 232.21 points, or 1.2%, to 19,624.16 Palantir shares popped 26% on fourth-quarter results that beat analyst expectations and had hit a fresh record high. The stock was headed for its best day since Feb. 6, 2024 — when it rallied 30.1%.Other big tech names like Nvidia were moving in sympathy with Palantir’s move higher. That stock rose nearly 3% during the session.The Chinese government slapped tariffs of up to 15% on U.S. imports of coal and liquefied natural gas and 10% higher duties on crude oil, farm equipment and selected cars, effective Feb. 10.The move comes after the U.S. agreed to pause more aggressive levies on Canada and Mexico. Canadian Prime Minister Justin Trudeau announced in a post on social media site X on Monday evening that Trump agreed to halt the implementation of tariffs against Canada for at least 30 days. Earlier on Monday, Mexican President Claudia Sheinbaum announced that duties on Mexico imports to the U.S. would also be halted for a month.Prices for the 10-year Treasury inched up, lowering yields to Tuesday’s 4.54%. Treasury prices and yields move in opposite directions.Oil prices decreased 41 cents to $72.75 U.S. a barrel. Prices for gold gained $14.60 an ounce to $2,871.60 U.S.