TSX edges higher on mining gains; Shopify, Middle East tensions cap upside

Kitco Media
By Reuters
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Reuters
TSX edges higher on mining gains; Shopify, Middle East tensions cap upside teaser image

May 5 (Reuters) - Canada's main stock index edged higher on Tuesday, lifted by mining stocks and corporate earnings, but a slump in Shopify shares after a ​muted forecast and renewed Middle East tensions capped gains.

At 11:17 a.m. ​ET, the Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE), ⁠was up 0.2% at 33,704.69 points with nine of ​11 sectors trading in green.

The heavyweight mining sector (.GSPTTMT), gained 1.2% as gold ​prices rose on inflationary concerns tied to the fragile Middle East truce after U.S. and Iranian forces exchanged fire in the Strait of Hormuz, fueling fears of further escalation.

Meanwhile, ​the technology sub-index (.SPTTTK), was down 2.4%, weighing on the TSX, ​after shares of e-commerce platform Shopify (SHOP.TO), slumped 9% following tepid forecasts for second-quarter sales ‌and ⁠profit, signaling softer demand.

Among other stocks, Thomson Reuters (TRI.TO), was up 3.6% after the company reported a double-digit first-quarter revenue rise, boosted by gains in its legal, corporates and tax, and audit and ​accounting segments.

Colliers (CIGI.TO), fell 3.3% ​after the real ⁠estate services firm missed first-quarter profit estimates.

Ero Copper (ERO.TO), rose 4.5% after the miner's first-quarter revenue beat analysts' estimates.

"Earnings have ​been quite strong so far, and while the ​conflict hasn't resolved ⁠itself, investors have really said earnings are very good and we're going to pile back into stocks," said Matthew Kempton, portfolio manager ⁠at ​Verecan Capital Management.

"There's still a struggle over ​whether the market cares more about earnings or headlines around Iran and ​oil."

Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Diti Pujara

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