05:31 PM EST, 03/05/2025 (MT Newswires) -- (Adds fresh commentary on the tariff talks in paragraphs 4 to 6 inclusive)

The Toronto Stock Exchange closed higher on Wednesday, regaining a portion of more than 800 points lost in the past two sessions on hopes the trade war with the United States will ease after automakers were given a one-month reprieve.

The S&P/TSX Composite Index closed up 298.82 points to 24,870.82. Among sectors today, Base Metals, up 5.64%, was the biggest gainer; Energy, down 0.77%, is the biggest decliner.

Multiple reports Wednesday afternoon noted that U.S. President Donald Trump will allow for a one-month tariff delay on auto manufacturers, while U.S. Press Secretary Karoline Leavitt said the president might consider exceptions on other goods. Outgoing Canadian Prime Minister Justin Trudeau and Trump spoke on the phone today and the PM's office released a short statement that said: "Both countries will continue to be in contact today."

CTV News is reporting that in talking about Canada-U.S. relations and the cross-border imposition of tariffs, Canada's Foreign Affairs Minister Melanie Joly says, "things are very, very fluid." Amid some U.S. officials floating potential reprieves, Joly said "conversations are happening."

"I completely understand what is at stake," Joly said, speaking at the Toronto Region Board of Trade.

She also confirmed, after saying yesterday she had a call planned with him at noon today, that U.S. Secretary of State Marco Rubio will be attending next week's G7 meeting of foreign ministers in Charlevoix, Que. Rubio's visit will be the first time a member of the current Trump administration comes to Canada.

In looking at what may be behind a seeming easing of the tensions between the United States and Canada, it should be noted the Federal Reserve's Beige Book released today was the latest data point to highlight tariff concerns south of the border. Bottom line, said BMO Economics, the Fed's regional report card, prepared for the March 18-19 meeting, suggests the U.S. economy is slowing. "For businesses across the country, stirring price pressures and trade uncertainty remained two major concerns. With the economy still in growth mode, the Fed will likely stay focused on inflation and remain on the sidelines for some time."

However the collapse of U.S. private sector employment last may be a more bearish indicator on the state of the U.S. economy. The ADP private-sector employment report showed hiring plunged last month, with just 77,000 new jobs added, down from 186,000 in January and well below the FactSet consensus estimate of 142,500.

Of commodities today, oil fell to a six-month low as rising inventories, the U.S. trade wars and a slowing American economy overcame the support provided by an increase in crude inventories. WTI crude oil for April delivery down $1.95 to settle at US$66.31 per barrel, the lowest since Sept.10, while May Brent crude was last seen down $1.84 to US$69.20.

Gold moved higher late afternoon on Wednesday as the dollar fell sharply after a report showed U.S. private-sector hiring collapsed last month. Gold for April delivery was last seen up $11.50 to US$2,932.10 per ounce.