Canada's main stock index fell on Thursday, as heavyweight financials led declines on escalating Middle East tensions, while higher crude prices lifted energy stocks and limited losses.
The TSX dropped 159.96 points to move into Thursday afternoon at 32,959.87
The dollar sank 0.08 cents to 73.44 cents U.S.
Financials dropped almost 1.1%, with shares of major banks including BMO Financial, dropping $2.89, or 1.5%, to $190.10, and Bank of Nova Scotia down $1.44, or 1.5%, to $95.50. Canadian non-prime consumer lender goeasy also tumbled $3/17, or 9.1%, to $36.96, extending sharp losses from the previous two sessions.
RBC upgraded its rating on Kinross Gold to "outperform" from "sector perform". Kinross shares turned south seven cents to $44.19.
Foreign Minister Anita Anand said foreign ministers from the Group of Seven will meet in Paris on March 24 and 25 to discuss diplomatic efforts to end the Iran crisis.
A busy day on the macroeconomic calendar.
Statistics Canada reported building permits increased $607.0 million (+4.8%) to $13.3 billion.
Wholesale trade fell 1.0% in January, on lower sales reported by companies in the motor vehicle and motor vehicle parts and accessories subsector, as well as the mineral, ore and precious metals industry group. and exports decreased 4.7%, while imports were down 1.1%.
As a result, Canada's merchandise trade deficit with the world widened from $1.3 billion in December to $3.6 billion in January.
Canada’s labour force index is due for February on Friday.
ON BAYSTREET
The TSX Venture Exchange decreased 24.11 points, or 2.2%, to 1,052.05.
All but two of the 12 TSX subgroups went lower, weighed most by health-care, hesitating 1.9%, gold, dimmer by 1.7%, and materials, off 1.3%.
The two gainers were energy, ahead 1.7%, and utilities, adding 0.9%
ON WALLSTREET
Stocks were under pressure on Thursday as oil prices added to their surge on supply disruption worries while the Iran war continued.
The Dow Jones Industrials dived 508.55 points, or 1.1%, to greet noon EDT Thursday at 46,901.42.
The S&P 500 index lost 66.34 points, or 1%, to 6,709.46.
The NASDAQ tumbled 291.32 points, or 1.3%, to 22,424.91.
Crude prices continued to climb after Iran’s new Supreme Leader Mojtaba Khamenei — who was appointed on March 9 — said that the Strait of Hormuz should remain closed as “tool to pressure the enemy.” West Texas Intermediate futures traded 9% higher at around $95 per barrel. Brent crude futures advanced 8% to roughly $100 per barrel.
Energy Secretary Chris Wright told reporters Thursday that the U.S. Navy is “not ready” to escort oil tankers through the Strait, though he said it will likely be able to do so by the end of the month. Traffic there has practically reached a standstill as the conflict in the Middle East escalates.
Overnight, three additional foreign vessels were hit in the Persian Gulf, according to authorities. That comes after three separate ships, including one in the Strait, had been struck Wednesday.
Selling was broad on Thursday, with banks and tech stocks in the red. Morgan Stanley led financials lower after capping private credit fund withdrawals. Energy stocks, including Chevron and Exxon Mobil, were among the few stocks in the green.
Prices for the 10-year Treasury were lower, boosting yields to 4.25% from Wednesday’s 4.23%. Treasury prices and yields move in opposite directions.
Oil prices climbed $7.61 to $94.86 U.S. a barrel.
Gold prices dumped $42.00 to $5,137.10 U.S. an ounce.
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