TSX, U.S. markets jump as U.S. and China call 90-day truce in trade war

Photo: The Canadian Press

Financial numbers flow on the digital ticker tape at the TMX Group in Toronto's financial district on May 9, 2014.  

Canada's main stock index was up nearly 200 points in early trading after the U.S. and China called a 90-day truce in their trade war and lowered tariffs on trade between the countries.

The S&P/TSX composite index was up 196.94 points at 25,554.68.

In New York, the Dow Jones industrial average was up 1,026.33 points at 42,275.71. The S&P 500 index was up 143.08 points at 5,802.99 while the Nasdaq composite was up 606.25 points at 18,535.17.

The Canadian dollar traded for 71.51 cents US compared with 71.80 cents US on Friday.

The U.S. has agreed to drop its tariff rate on Chinese goods to 30 per cent from 145 per cent, while China has agreed to lower its rate on U.S. goods to 10 per cent from 125 per cent.

The move came after U.S. and Chinese officials met in Switzerland.