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Canadian Stocks Regaining Ground As U.S. Delays Tariffs

After moving sharply lower over the course of the two previous sessions, Canadian stocks are regaining some ground during trading on Tuesday.

The S&P/TSX Composite Index has moved moderately higher on the day, climbing 54.23 points or 0.3 percent to 16,292.00.

The rebound by Canadian stocks comes after U.S. Trade Representative Robert Lighthizer announced President Donald Trump's plan to impose a 10 percent tariff of certain Chinese imports will be delayed, with some products being removed from the tariff list entirely.

The USTR said certain products included in a May list of Chinese imports that could potentially be subject to additional tariffs will be spared based on health, safety, national security and other factors.

The imposition of the 10 percent tariff on other products, including cell phones, laptop computers, video game consoles, and toys, will be delayed until December 15.

The USTR said the delay is part of its public comment and hearing process and noted it intends to conduct an exclusion process for products subject to the additional tariffs.

The news has offset recent concerns about the escalating U.S.-China trade war, which have contributed to strength among U.S. treasuries and a subsequent slump in yields.

Energy stocks have helped to lead the way higher amid a jump by the price of crude oil, with crude for September delivery soaring $1.90 to $56.83 a barrel.

Healthcare and consumer discretionary stocks have also moved to the upside, while materials stocks are seeing notable weakness amid a sharp pullback by the price of gold.

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