Canada’s main stock index climbed sharply on Wednesday, gaining about 440 points as strong performance in the base metals sector helped push markets higher, while U.S. stock markets also recorded solid gains.
The S&P/TSX composite index rose 441.01 points to close at 32,382.60, reflecting renewed investor confidence despite continuing geopolitical tensions linked to the war involving Iran in the Middle East.
The market gains came as Iran rejected a U.S. proposal aimed at pausing the conflict, instead issuing its own counter-proposal. Despite the diplomatic standoff, investors appeared encouraged by signs that discussions around easing the conflict may still be underway.
In the United States, major stock indexes also finished higher. The Dow Jones Industrial Average rose 305.43 points to close at 46,429.49.
The S&P 500 gained 35.53 points to end the day at 6,591.90, while the Nasdaq Composite climbed 167.93 points to 21,929.83.
Currency markets showed slight weakness for the Canadian dollar, which traded at 72.46 cents U.S., down from 72.67 cents U.S. a day earlier.
Energy prices moved lower as traders weighed the potential impact of diplomatic developments on global oil supply. The May crude oil contract fell 2.03 U.S. dollars to settle at 90.32 dollars per barrel.
Meanwhile, gold prices surged as investors continued to seek safe-haven assets amid uncertainty surrounding the ongoing conflict and global economic outlook.
The April gold contract rose 150.30 dollars to close at 4,552.30 dollars an ounce.