Investing.com - Canada’s main stock exchange edged higher on Wednesday, with sentiment bolstered by hopes for a positive outcome in upcoming trade discussions between the U.S. and China.
By the 4:00 ET close, the S&P/TSX 60 index rose by 12.2 points, or 0.8%.
Toronto Stock Exchange’s S&P/TSX composite index gained 186.5 points or 0.8%, having closed up by 21.2 points, or 0.1%, on Tuesday. Investors gauged a muted outcome of a much-anticipated meeting between Canadian Prime Minister Mark Carney and U.S. President Donald Trump. An uptick in gold and oil prices also boosted stocks.
Carney noted that there were no decisions on the levies were made, while comments from Trump and U.S. Treasury Secretary Scott Bessent shed limited light on the prospect for future trade deals.
Canada’s trade deficit narrowed to C$506 million in March, topping estimates thanks in part to a drop in imports that outpaced a fall in exports.
U.S. stocks gain
U.S. stock indexes jumped on Wednesday after the U.S. government signaled that trade negotiations with China will begin this week, although caution before the conclusion of a Federal Reserve meeting kept gains in check.
At the 4:00 ET close, the Dow rose 285 points or 0.7%, the S&P gained 24.4 points, or 0.4%, and the Nasdaq increased 48.5 points or 0.3%.
Bessent and Trade Representative Jamieson Greer will meet their Chinese counterparts for trade talks in Switzerland this week, their respective offices announced on Tuesday evening. The two will travel to Switzerland on May 8.
Media reports said that China’s Vice Premier He Lifeng- Beijing’s lead official for U.S.-China matters- will meet Bessent in Switzerland.
Announcement of the talks marks a potential thaw in U.S.-China relations, which drastically worsened in April as the two countries engaged in a bitter tariff exchange.
Markets feared that a prolonged trade war between the world’s biggest economies will have dire implications for the global economy. Weak data points from the U.S. and China, released over the past week, added to concerns over trade-related disruptions.
News of the day involved a fall in Google (NASDAQ:GOOGL) and Apple (NASDAQ:AAPL) stock after Apple exec Eddy Cue said that Safari search usage declined for the first time in April. Cue also indicated that Apple is actively investigating the addition of AI search capabilities to its browser.
Ahead of market close, reports surfaced that the Trump administration intends to rescind Biden-era AI chip curbs, which could reshape semiconductor trade restrictions. NVIDIA Corporation (NASDAQ:NVDA), which has advocated for such changes, saw shares jump over 3% in response.
On Wednesday morning, Uber Technologies Inc (NYSE:UBER) reported first-quarter earnings that beat analyst estimates, but revenue fell short of expectations.
Wednesday evening’s earnings, all eyes were on Arm Holdings ADR (NASDAQ:ARM), as the company reported results that topped estimates, but softer guidance for the current quarter sent shares down nearly 12% in aftermarket trading.
Fed holds rates; outlook in focus
Still, the proximity to the Fed’s latest policy-setting meeting limited gains.
The Federal Reserve left interest rates unchanged Wednesday as growing risks to economic growth and higher inflation leave the central bank rooted in its wait-and-see approach until the fog around the impact of the Trump administration’s tariffs is lifted.
Policymakers will be grappling with relatively muddled economic data. While figures showed that U.S. gross domestic product contracted in the first quarter, consumer spending remains solid and the labor market has proved to be resilient.
But with the next batch of rate forecasts from officials not due out until June, the attention was squarely on Fed Chair Jerome Powell’s post-decision press conference for any clues.
Powell acknowledged that the Fed will persist with its wait and see approach until there is uncertainty on the impact of tariffs eases. "The costs of waiting to see further are fairly low," Powell said.
"I can’t tell you how long it will take, but for now, it does seem like it’s a fairly clear decision for us is to wait and see and watch," he added.
Higher U.S. inventories help lift crude
Meanwhile, oil prices fell, continuing four-year lows after gaining in the morning on trade hopes and signs of healthy demand in the world’s largest consuming nation.
U.S. crude stocks fell by 4.5 million barrels in the week ended May 2, according to data from the American Petroleum Institute on Tuesday, indicating demand remains strong. Official U.S. government data from the Energy Information Administration are due later in the session.
As of 6:45, Crude Oil WTI Futures fell 0.05%, pricing in at $57.94 per barrel. Brent Oil Futures dropped 1.9%, moving to $60.95 a barrel.
Gold slips,
Gold prices fell as the announcement of trade talks between officials from U.S. and China boosted risk appetite and sapped haven flows, while the dollar also firmed before the Fed decision. Late in the day, the previous metal attempted to recover losses.
By 6:45 ET, Gold Futures gained 0.2% at $3,377.49/oz. XAU/USD was also gaining at the time, up 0.2% to $3,370.71 per ounce.
The yellow metal had gained some ground this week, coming back in sight of record highs as a lack of clarity on U.S.-China trade tension drove up haven demand. But this trend appeared to have reversed somewhat on Wednesday.
(Scott Kanowsky also contributed to this article)