Canadian Stocks Close Modestly Lower But Well Off Worst Levels

(RTTNews) - Following the sharp pullback seen during yesterday's session, Canadian stocks saw further downside in early trading on Thursday but regained ground as the day progressed.

The benchmark S&P/TSX Composite Index climbed well off its worst levels of the day but still closed down 44.97 points or 0.1 percent at 35,706.46.

The recovery attempt on Bay Street was triggered in part by a Reuters report indicating U.S. and Iranian negotiators are discussing a phased deal to end the prolonged Middle East conflict.

Citing sources close to the talks, Reuters said the U.S. and Iran are exploring a phased path out of war that would involve Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade of Iran.

Stocks responded positively to the report even as the price of crude oil gave back some ground but remained sharply higher on the day.

U.S. crude oil futures are still up by about 3 percent after spiking by 5 percent earlier in the session, keeping buying interest on Wall Street somewhat subdued.

Information technology stocks showed a strong move to the upside over the course of the session, driving the S&P/TSX Capped Information Technology Index up by 1.8 percent.

The sharp increase by the price of crude oil also contributed to strength among energy stocks, with the S&P/TSX Capped Index climbing by 1 percent.

On the other hand, healthcare stocks moved sharply lower on the day, resulting in a 2.4 percent plunge by the S&P/TSX Capped Health Care Index.

Consumer discretionary stocks also remained mostly lower, dragging the S&P/TSX Capped Consumer Discretionary Index down by 2 percent.