12:19 PM EDT, 05/12/2025 (MT Newswires) -- The Toronto Stock Exchange, which was up 370 points earlier, as investors cheered the easing of U.S.-China trade tensions, has given up some of its gains and is now up 135 points at midday.

Most sectors are higher, with info tech (+5%) and miners (+4.2%), the biggest gainers, followed by energy (+2.7%).

Utilities is down 1.2%, followed by telecoms, down 0.2%.

Thierry Wizman, Global FX & Rates Strategist at Macquarie, said since news of "substantial progress" in the U.S. and China talks in Geneva was announced over the weekend, markets were bound to make substantial moves upward in risk assets. As the details of the tentative deal emerged today, the terms seem better than what was expected, as it includes a substantial reduction in tariffs for at least 90 days.

Wizman said: "While positive for risk assets insofar as it reduces the probability and intensity of a prospective global slowdown, the US-China 'deal' is probably a 'mutually agreed-to tactical retreat', despite the expressions of goodwill expressed by both sides. Avoiding a severe slowdown was a goal of both sides, but the U.S. has not abandoned its desire or intent to slow or stop China's rise to primacy in global economic, political, and military matters."

The U.S., Wizman noted, is re-engaging with the world now through a "kinder, gentler economic diplomacy" than it did in March and early April. And yet, he said, the view of the U.S. as a "full faith and credit" counter-party won't return soon, given the damage caused by April's events. Wizman added: "Diversity economic and security exposure away from the U.S. -- especially after 13 years (2012-2024) of U.S. primacy -- is likely still compelling. It will limit the USD's gains, before the USD weakens again."

On the home front, BMO Economics in its morning note pointed out that the "significant breakthrough" in U.S.-China trade talks is also pushing up futures on the TSX. After four straight days of gains, the benchmark index is now only less that 2% below its record high.

But BMO said although the 90-day 'truce' between the world's two biggest economies is unleashing a global stock market rally today, there is still the hard economic data and the key now is to restore business and consumer confidence. Canada got its first glimpse of April figures last week. Employment grew by just 7,400 last month, while the jobless rate rose two ticks to 6.9%.

On the stock front, Pan American Silver ( PAAS ) , down 14.8% on last look, overnight Sunday agreed to acquire MAG Silver ( MAG ) for nearly US$2.1 billion. MAG shareholders will receive the equivalent of $20.54 per share based on the closing price of Pan American's common shares on May 9.