(MENAFN - Baystreet.ca) Canada's main stock index reversed course to turn sharply higher after Washington decided to delay 10% tariffs on some Chinese products, including laptops and cell phones, that were scheduled to kick in next month.
The S&P/TSX Composite climbed 85.77 points to greet noon Tuesday at 16,323.54
The Canadian dollar had regained strength, climbing back to Monday's level of 75.54 cents U.S.
The largest percentage gainers on the TSX were Stars Group, which jumped 84 cents, or 4.9%, to $18.00, and Turquoise Hill Resources, which rose a penny, or 1.6%, to 62 cents.
Yamana Gold fell seven cents, or 1.6%, the most on the TSX, to $4.39, and the second biggest decliner was First Majestic Silver, down 45 cents, or 3.2%, to $13.68
The TSX Venture Exchange lost 4.35 points to 590.34
All but three of 12 Toronto subgroups remained positive midday, led by energy, rumbling ahead 1.3%, industrials, up 0.8%, and financials, better by 0.7%.
The three laggards were gold, sagging 0.9%, materials off 0.3%, and information technology, fading 0.2%.
Stocks surged higher in a sudden move after the U.S. said it was delaying China tariffs until December on items including cellphones and clothing. The U.S. also outright removed some items from list of new tariffs.
The Dow Jones Industrials shot higher 414.58 points, or 1.6%, from the rubble of Monday's near-400-point-loss, to break for lunch at 26,312.29
The S&P 500 recouped 44.38 points, or 1.5%, to 2,927.41
The NASDAQ sprouted wings and flew 141.51 points, or 1.8%, to 8,005.12, led by Apple which surged more than 4%.
The U.S. Trade Representative announced Tuesday certain products are being removed from the tariff list based on "health, safety, national security and other factors" and will not face additional tariffs of 10%. The representative added the tariff should be delayed to Dec. 15 from Sep. 1 for certain articles.
Retailers cheered the potential delayed rise in costs for apparel and electronics. Best Buy soared 10%, while Nike jumped 2%. Macy's and Nordstrom also both surged more than 4%.
Economically speaking, the U.S. Labor Department's consumer price index report showed inflation came in as expected last month. The yield curve continued to narrow after the report.
Prices for the benchmark 10-year U.S. Treasury fell sharply, upping yields to 1.68% from Monday's 1.64%. Treasury prices and yields move in opposite directions
Oil prices flew $2.20 to $57.13 U.S. a barrel.
Gold prices shook off losses, but remained lower $4.40 to $1,512.80 U.S. an ounce.