April 8 (Reuters) - Canada's main stock index jumped on Wednesday, as mining stocks led broad-based gains after a U.S.-Iran ceasefire lifted investor sentiment.
At 10 a.m. ET, the S&P/TSX Composite Index (.GSPTSE), was up 1.57% at 33,757.56.
The U.S. and Iran's two-week ceasefire suspended a six-week-old conflict that has crimped energy supplies and stoked inflation fears.
A senior Iranian official involved in the discussions told Reuters Tehran could open the Strait of Hormuz on Thursday or Friday ahead of planned peace talks in Pakistan, if a framework for the ceasefire is agreed.
"Even though there is still uncertainty over how durable this ceasefire is, stocks can still move higher even without all of the details ironed out," said Robert Edwards, chief investment officer from Edwards Asset Management, in a note.
"Just the scent of thawing tensions is enough for forward-looking stocks to keep climbing the wall of worry."
The agreement, however, remains conditional and long-term effects are yet to be ascertained.
"We cannot ignore the lingering second order effects on the global economy so investors should continue to watch how geopolitical risks may affect wholesale prices, growth and financing conditions," said Jeffrey Roach, chief economist for LPL Financial, in a note.
The gold subindex (.SPTTGD), climbed above 4% and the broader materials sector (.GSPTTMT), which includes metal miners, added 3.8% as precious metal prices reached a near-three-week high.
Tech stocks (.SPTTTK), jumped 3.1%, with shares of e-commerce firm Shopify (SHOP.TO), gaining 5.8%.
Blackline Safety (BLN.TO), soared 25.5% after the industrial safety technology provider agreed to be taken private by U.S. private equity firm Francisco Partners.
Financials (.SPTTFS), weighted heaviest on the index, added 2.2%.
Brent crude futures and the U.S. West Texas Intermediate crude both traded slightly above $90 a barrel.
TSX’s energy subindex (.SPTTEN), slumped more than 6%; Vermilion Energy (VET.TO), and International Petroleum (IPCO.TO), fell more than 10%.
Reporting by Utkarsh Tushar Hathi; Editing by Sahal Muhammed
