CLOSING BELL: China’s promise to cut tariffs propels markets
Trade war tensions eased, and the markets responded in kind today, to China’s announcement it would cut import tariffs.
With word from Beijing that it would vastly increase market access for foreign investors, the Dow Jones soared 428 points to close at 24,408. This comes after weeks of the United States and China going back and forth on tariff threats worth billions of dollars.
Meanwhile Canada’s main stock market started on a strong note, getting boosts from the energy and financial sectors, but steadily fell as the day went on. It still managed to close at 15,262, up 34 points.
Part of those energy gains came from Kinder Morgan, as the company was up more than 3.5 per cent today, with Alberta Premier Rachel Notley floating the idea of the province buying the Trans Mountain project, and the federal government saying it’s looking at all options to make sure the pipeline gets built.
Kinder Morgan has put a hold on development, giving the B.C. government until May 31st to put an end to its opposition.
The loonie hit a six-week high today, thanks to higher oil prices. At press time it’s up three quarters of a cent to 79.32 cents U.S., oil is up $2.35 to $65.77 U.S. per barrel, and gold is up $3.80 to $1343.90 an ounce.