Canada’s main stock index touched a record high on Tuesday, led by gains in real estate shares, after U.S. President Donald Trump delayed his proposed tariffs on European Union imports.
The S&P/TSX composite index was up 0.7% at 26,254.39 points; the index had closed on a record high on Monday as well.
Trump said on Tuesday the EU’s move to set up trade meetings was positive and he hoped Europe would “open up” to trade with the U.S.
After a weekend call with the European Commission’s president, Trump paused until July 9 his threatened tariff of 50% on goods entering the U.S. from the EU.
Wall Street peers, which saw no trade on Monday due to a U.S. holiday, were also set for solid gains.
“We’ll see whether the gains hold in the U.S. and that’s going to have a ripple effect in Canada,” said Brian Madden, chief investment officer and portfolio manager at First Avenue Investment Counsel.
“Beyond that, noteworthy news influencing Canada on the day is Scotia Bank, one of the Big Six lenders, and a corporate takeover in the real estate sector - InterRent REIT properties”.
On TSX, interest-rate sensitive real estate shares rose 2.2%, boosted by InterRent Real Estate Investment Trust rising 14.7% after announcing a $4 billion acquisition by CLV Group and GIC.
Heavyweight financial subindex gained 0.7%.
Bank of Nova Scotia gained 1.2%, though the Canadian lender missed quarterly earnings estimates.
Information and technology subindex gained 1.1%.
Meanwhile, Canadian government 10-year bond yield fell 3.2 basis points to 2.39%. The yield on similar U.S. government benchmark debt also fell.
Separately, data showed Canadian wholesale trade most likely fell 0.9% in April from March.
Looking ahead, investor focus will be on Statistics Canada’s first-quarter GDP data due on Friday.
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