Apr 23, 2025 (Baystreet.ca via COMTEX) --
Canada's main stock index opened higher on Wednesday as investors welcomed U.S. President Donald Trump's assurance that he would not fire Federal Reserve Chairman Jerome Powell, along with his hints of a possible trade deal with China.
The TSX Composite Index vaulted 334.08 points, or 1.4%, to 24,640.06.
The Canadian dollar was unchanged at 72.21 cents U.S.
Trump also said he wanted to reach a deal with China where tariffs would not be anywhere near 145%, adding that he would set the terms of a deal if Beijing did not enter talks.
In Canada, Trump's tariff threats and annexation rhetoric have united two main election candidates in a rare consensus as both pledge to fast-track energy projects reducing U.S. export dependence ahead of the April 28 vote.
In individual stock news, Rogers Communication reported first quarter profit and revenue below analysts' estimates. Rogers shares sprang 80 cents, or 2.3%, in the first hour to $35.92.
On the economic agenda, Statistics Canada reports its new housing price, on a month-to -month basis, compared with a 0.1% rise in the prior-year month.
ON BAYSTREET
The TSX Venture Exchange regained 1.51 points to 632.31.
All but two of the 12 subgroups were higher in the first hour, as information technology rocketed 5.4%, consumer discretionary stocks climbed 2.1%, and financials gained 2%.
The two laggards proved to be gold, waning 4.3%, and materials, skidding 2.2%.
ON WALLSTREET
Stocks surged on Wednesday on hopes that U.S.-China trade tensions could soon ease, while President Donald Trump signaled he doesn't plan to remove Federal Reserve Chairman Jerome Powell from his post as central bank leader.
The Dow Jones Industrials rocketed 1,069.60 points, or 2.7%, to 40,256.58
The S&P index climbed 166.67 points, or 3.2%, to 5,454.43
The NASDAQ Composite spiked 670.32 points, or 4.1%, to 16,970.74
Trump said Tuesday he's willing to take a less confrontational approach to trade talks with China, noting that the current 145% tariff on Chinese imports is "very high, and it won't be that high. ... No, it won't be anywhere near that high. It'll come down substantially. But it won't be zero."
The Wall Street Journal then reported Wednesday, citing a White House official, that the administration was considering reducing China tariffs to between 50% and 65%. The report sent the U.S. benchmarks to session highs. A White House official later told reporters that such a move would have to be bilateral, however, with China lowering trade barriers as well.
Stocks with higher exposure to China that have sold off in recent weeks rallied. This included "Magnificent Seven" titans Apple, gaining 2%, and Nvidia, which was 5%,,
Shares of Tesla popped 5% also due to easing tariff pressures and after CEO Elon Musk said during the company's Tuesday earnings call that his time spent running Trump's Department of Government Efficiency will drop "significantly" starting next month.
Investors also breathed a sigh of relief as Trump also said that he has "no intention" of firing Powell, whose term as Fed chair will end in May 2026. The comment is a reversal of sorts for the president, who fired off barbs against Powell as recently as Monday, calling the central bank leader a "major loser" and demanding that interest rates come down. Just last week, Trump said in a Truth Social post that Powell's "termination cannot come fast enough."
Prices for the 10-year Treasury powered up soon after Wednesday's open, lowering yields to 4.33% from Tuesday's 4.41%. Treasury prices and yields in opposite directions.
Oil prices stumbled $1.71 to $61.96 U.S. a barrel.
Prices for gold skidded $132.02 to $3,286.90 U.S.
COMTEX_464841483/2559/2025-04-23T10:42:54
