May 15 (Reuters) - Canada's main stock index edged higher on Thursday, although the gains were capped by a dip in energy stocks, while investors remained optimistic on more potential trade deals around the world with the U.S.
The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE), was up 0.3% at 25,774.81 points, on track for eight straight sessions of gains.
A series of investment deals from the Middle East during U.S. President Donald Trump's ongoing Gulf tour, along with earlier positive news on the U.S.-China tariff dispute and cooler U.S. inflation data, is influencing market sentiment.
"We're hearing about deals between the U.S. and a few Middle East countries, big technology deals, etc...setting the tone for the market," said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth.
"The market is optimistic that trade deals can get done... but right now it's all up to the U.S. trying to make trade deals with other countries."
On TSX, energy stocks (.SPTTEN), fell 1.9%, tracking lower oil prices, while the healthcare subindex (.GSPTTHC), dropped nearly 1%.
Meanwhile, mining stocks (.GSPTTMT), gained 0.6% as gold rebounded from early losses.
Industrial stocks (.GSPTTIN), also rose 1.5%, with Atkinsrealis Group (ATRL.TO), up 9.6%, after the engineering services firm reported first-quarter profit and revenue above estimates.
Meanwhile, U.S. Federal Reserve chair Jerome Powell said central bank officials felt they needed to reconsider the key elements around jobs as well as inflation in their current monetary policy approach.
U.S. retail sales growth slowed in April, while a Labor Department report showed the producer price index for final demand fell 0.5% for the same month, compared to an expectation of a 0.2% rise.
Back home, Canadian factory sales dropped 1.4% in March from February, while home sales fell 0.1% in April from March and were down 9.8% year-on-year.
However, wholesale trade grew 0.2% in March from February on higher sales in the motor vehicle and parts subsector.
Reporting by Sanchayaita Roy; Editing by Vijay Kishore
