Jan 21 (Reuters) - Canada's main stock index on Wednesday clawed back some of the previous day's sharp decline as energy shares rallied and the threat of a trade clash between the U.S. and Europe over Greenland faded.
The S&P/TSX Composite Index ended up 101.25 points, or 0.3%, at 32,851.53, after it posted on Tuesday its biggest decline in two months.
Wall Street benchmarks also rallied after news that a framework for an agreement on Greenland had been reached, averting the possibility of new U.S. tariffs on European allies.
"It's been all geopolitics," said Allan Small, senior investment advisor of the Allan Small Financial Group with iA Private Wealth. "That's been the main story for all markets including the Toronto stock market."
Cenovus Energy is considering a sale of conventional oil and gas assets in the Deep Basin of Alberta as it looks to cut debt after the recent takeover of oil sands rival MEG Energy, two sources familiar with the matter told Reuters.
Shares of Cenovus rose 4.5%, while the energy group was up 3.4%. The price of oil settled 0.4% higher at $60.62 a barrel, posting its third straight day of gains.
Industrials added 1.5% as railroad shares notched gains. Consumer staples were up 1.3% and heavily weighted financials ended 0.7% higher.
Teck Resources was among the biggest advancers, with its shares rising 5.5% after the copper miner reaffirmed its 2026 production outlook.
Shares of Eldorado Gold gained 4.6% after the gold miner said it had achieved the higher end of its production guidance in the previous year.
Still, the materials group, which includes metal mining shares, gave back some of its recent gains. Materials ended 1.1% lower and technology lost nearly 1%, with shares of e-commerce company Shopify Inc down 4.2%.
(Reporting by Fergal Smith in Toronto and Utkarsh Tushar Hathi in Bengaluru; Editing by Jonathan Ananda and Matthew Lewis)
By Fergal Smith
