05.06.202520:02:45UTC+00TSX Edges Higher on Thursday

On Thursday, the S&P/TSX Composite Index saw a modest increase of 0.1% to close at 26,342. This movement reflected the interplay between global trade developments and lackluster domestic economic data. A phone conversation between President Xi Jinping and President Donald Trump fueled optimism for potential reductions in US-China tariffs, benefiting resource-centric sectors like oil producers as crude prices rebounded. Conversely, the Information Technology sector faced pressure, notably with Descartes suffering a sharp 12.1% decline due to missed quarterly expectations. Prominent mining companies, including Agnico Eagle, Wheaton Precious, Barrick Gold, and Franco-Nevada, also underperformed, with losses ranging from 0.8% to 2.8%. Economically, Statistics Canada revealed a record merchandise trade deficit of $7.1 billion for April. This was prompted by a substantial 10.8% decrease in exports compared to a 3.5% fall in imports, underscoring weak external demand. Additionally, the Ivey Purchasing Managers Index (PMI) for May remained in contraction territory at 48.9.