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TSX Ends Higher On Trade Deal Hopes

The Canadian stock market ended higher on Thursday, extending recent gains, amid rising optimism the U.S. and China will sign an interim trade deal this month.

Hectic buying in the energy space thanks to some strong earnings and higher crude oil prices contributed as well to market's uptick.

The benchmark S&P/TSX Composite Index ended up 60.11 points, or 0.36%, at 16,805.75.

The Capped Energy Index climbed up 4.2%. Canadian Natural Resources (CNX.TO), the top gainer in the section, notched up as much as 8.3%.

Crescent Point Energy (CPG.TO), ARC Resources (ARX.TO) and Parex Resources (PXT.TO) gained 5.2 to 5.8%. Cenovus Energy (CVE.TO), Seven Generations Energy (VII.TO), Whitecap Resources (WCP.TO), Suncor Energy (SU.TO), Tourmaline Oil Corp (TOU.TO), Husky Energy (HSE.TO), MEG Energy (MEG.TO), Baytex Energy (BTE.TO) and Imperial Oil (IMO.TO) also moved up sharply.

Telecommunications shares Telus Corp. (T.TO) and Quebecor Inc. (QBR.B.TO) ended stronger by 4.2% and 2.1%, respectively.

First Quantum Minerals (FM.TO), Lundin Mining (LUN.TO), Bombardier Inc. (BBD.B.TO) and Manulife Financial Corp (MFC.TO) gained 1.2 to 4.2% on strong volumes.

Stantec Inc. (STN.TO) shares soared nearly 16% after the company reported a near 30% jump in adjusted net income for the quarter ended September 2019, over the year-ago quarter.

Ag growth International (AFN.TO), Linamar Corporation (LNR.TO), Saputo Inc. (SAP.TO), Canadian Tire Corporation (CTC.A.TO) and Domtar Corporation (UFS.TO) gained 3 to 7%.

In trade news, China and the United States reportedly agreed to cancel tariffs on each other's goods for both sides to reach a "phase one" trade deal.

"The trade war started with tariffs and should end with the cancellation of tariffs," said ministry spokesman Gao Feng, who noted phase one of a trade deal must include both countries simultaneously canceling tariffs on each other's goods.

"Both sides have agreed to cancel additional tariffs in different phases, as both sides make progress in their negotiations," Gao added without providing a timetable.

U.S. stocks gave up some gains after early strength, but still managed to close notably higher. The Dow advanced 0.7%, while the Nasdaq and the S&P 500 both ended higher by 0.3%.

Stock markets across the Asia-Pacific region moved mostly higher. The major European markets too ended on a positive note.

In commodities, West Texas Intermediate Crude oil futures for December ended up $0.80, or about 1.4%, at $57.15 a barrel.

Gold futures for December ended down $26.70, or about 1.8%, at $1,466.40 an ounce, the lowest settlement since August 2, 2019.

Silver futures for December ended down $0.598, at $17.010 an ounce, while Copper futures for December settled at $2.7275 per pound, gaining $0.0625 for the session.

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