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Canadian Stocks Show Strong Move Back To The Upside

Canadian stock showed a strong move to the upside over the course of the trading session on Tuesday, rebounding after moving sharply lower over the two previous sessions.

The S&P/TSX Composite Index moved moderately higher early in the session and saw further upside as the day progressed before closing up 113.07 points or 0.7 percent at 16,350.84.

The rebound by Canadian stocks came after U.S. Trade Representative Robert Lighthizer offered a temporary reprieve from concerns about the U.S.-China trade war by announcing a delay in imposing new tariffs on certain Chinese products.

Lighthizer said the 10 percent tariff set to take effect on September 1st should be delayed until December 15th for certain products.

The products benefiting from the delay include cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing.

Additionally, the USTR announced certain unidentified products will be removed from the tariff list entirely based on health, safety, national security and other factors.

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

The announcement comes less than two weeks after President Donald Trump announced plans to impose a 10 percent tariff on the remaining $300 billion worth of Chinese imports.

Trump told reporters the delay comes amid concerns the tariffs could impact U.S. customers during the holiday shopping season even though he has repeatedly claimed the trade dispute has not hurt Americans.

Healthcare stocks showed a significant move to the upside on the day, driving the S&P/TSX Capped Health Care Index up by 2.2 percent.

A sharp increase by the price of crude oil also contributed to strength among energy stocks, which moved notably higher along with consumer, industrial, and telecom stocks.

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