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Canadian Market Recovers After Weak Start

After drifting lower in early trades, led by losses in mining stocks due to weak gold prices, the Canadian stock market recovered and briefly emerged into positive territory by late morning on Tuesday.

Information technology shares are the other notable losers, while energy, financial and consumer discretionary stocks are faring fairly well.

Markets in Europe and the U.S. advanced today after the U.S. Commerce Department temporarily eased trade restrictions on Chinese tech giant Huawei.

Following the reprieve announced by the U.S. government, Google reversed its earlier decision and announced it will continue to work with Huawei over the next 90 days.

The benchmark S&P/TSX Composite Index, which recovered to 16,411.65 after falling to a low of 16,354.31 earlier, is now down 14.59 points, or 0.09%, at 16,387.16.

Among the stocks in the materials space, First Quantum Minerals (FM.TO) is declining 5.2% and Kinross Gold Corporation (K.TO) is down 1.1%. Barrick Gold Corporation (ABX.TO) is down nearly 1% and IAM Gold Corporation (IMG.TO) is lower by about 0.6%.

Industrial stock Bombardier Inc. (BBD.B.TO) is rising more than 3%.

Energy stocks Encana Corporation (ECA.TO), Baytex Energy (BTE.TO), Whitecap Resources (WCP.TO) and Suncor Energy (SU.TO) are up with solid gains.

In the financial space, Royal Bank of Canada (RY.TO) and Bank of Nova Scotia (BNS.TO) are up with modest gains and Toronto-Dominion Bank (TD.TO) is up marginally, while Canadian Imperial Bank of Commerce (CM.TO) is rising 1.6%. Manulife Financial Corporation (MFC.TO) is gaining about 1.3%.

U.S. stocks are up this morning and the major averages have all posted notable gains. The temporary reprieve to Huawei triggered the upside for the market.

The Dow is gaining about 0.6% and the S&P 500 is up 0.88%, while the Nasdaq is rising 1.12%.

The U.S. Commerce Department issued a temporary license authorizing specific, limited engagement in transactions involving the export, re-export, and transfer of items to Huawei for 90 days.

Commerce Secretary Wilbur Ross said the temporary reprieve grants "operators time to make other arrangements and the Department space to determine the appropriate long term measures for Americans and foreign telecommunications providers that currently rely on Huawei equipment for critical services."

"In short, this license will allow operations to continue for existing Huawei mobile phone users and rural broadband networks," he added.

In commodities, crude oil futures for June pared early gains and are down $0.07, or 0.11%, at $63.03 a barrel.

Gold futures for June are down $3.50, or 0.27%, at $1,273.80 an ounce.

Silver futures for are declining $0.015, or 0.1%, at $14.430 an ounce, while Copper futures for July are down marginally at $2.7250 per pound.

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