Following the pullback seen over the past few sessions, Canadian stocks are seeing modest strength during trading on Wednesday.
The S&P/TSX Composite Index moved to the upside early in the session and is currently hovering above the unchanged line, up 19.37 points or 0.1 percent at 16,911.55.
The modest rebound comes after a report from Bloomberg News indicated the U.S. and China are moving closer to agreeing on the amount of tariffs that would be rolled back in a phase one trade deal.
Citing people familiar with the talks, Bloomberg said U.S. negotiators expect a phase one deal to be completed before U.S. tariffs are set to rise on December 15.
The people told Bloomberg outstanding issues in the talks include how to guarantee China's purchases of U.S. agricultural goods and exactly which tariffs to roll back.
Meanwhile, the Bank of Canada announced its widely expected decision to maintain its target for the overnight rate at 1.75 percent.
The Bank of Canada said its October projection for global economic growth appears to be intact while noting ongoing trade conflicts and related uncertainty remain the biggest source of risk to the outlook.
Energy stocks have shown a substantial move to the upside, benefiting from a sharp increase by the price of crude oil.
Crude for January delivery is spiking $2.05 to $58.15 a barrel after the U.S. Energy Information Administration said crude oil inventories plunged by 4.9 million barrels in the week ended November 29th.
Technology stocks are also seeing notable strength on the day, while consumer discretionary and materials stocks have moved to the downside.