(Updates throughout, adds details and analyst comments)
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TSX up 0.4%, led by gold miners
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Gold sector index gains 2.5%
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Data-center infra firm Celestica's ( CLS ) shares hit two-week low
By Utkarsh Hathi
Jan 22 (Reuters) - Canada's main stock index rose on
Thursday, as investor sentiment turned positive after U.S.
President Donald Trump withdrew tariff threats against European
allies and ruled out using force to acquire Greenland.
At 10:24 a.m. ET, the S&P/TSX Composite Index was
up 0.4% at 33,977.17 points.
Trump, who met NATO Secretary General Mark Rutte on
Wednesday, said in a social media post that the U.S. and its
NATO allies had a framework for a future deal on Greenland and
walked back threats to impose a 10% tariff from February 1 on
eight European countries.
The TSX, heavily weighted toward miners, remains sensitive
to geopolitical tensions as safe-haven assets including gold and
other precious metals dominate its resources sector.
"It's probably cautious optimism. We'll get a bit of a
relief rally out of the back of this, but I don't know how long
it'll last," said Greg Taylor, chief investment officer at
PenderFund Capital Management.
The benchmark's gold sub-index climbed 2.5% on
Thursday, with miner New Gold ( NGD ) leading gains after a
10.7% jump. The broader materials index, which
included mining stocks, added 1.9%.
Spot gold was up 0.7%, while silver gained
2.6%.
Overall gains on the TSX were also supported by Wall Street
advances, with investors assessing fresh economic data that
showed a resilient U.S. economy.
The energy index slipped 1%, however, as oil
prices fell after Trump toned down threats
against Greenland and Iran.
Tech shares led losses, down 1.4%, with
data-center infrastructure provider Celestica ( CLS ) sinking
8% to a two-week low.