Canada's main index fell to a more than one-week low on Monday as renewed Middle East hostilities and worsening trade ties with the U.S. dampened risk appetite, while gains in energy stocks helped cushion some losses.
The TSX tumbled 328.09 points to 36,225.83.
The Canadian dollar regrouped 0.21 cents to 72.16.
Technology stocks withered with e-commerce giant Shopify at the bottom of the benchmark index. Shopify tumbled $8.81, or 4.2%, to $203.61.
The materials sector fell, tracking a dip in prices of precious and base metals. The sector remains on track to lead monthly gains, up over 25%.
This has put the TSX on track for a fifth consecutive monthly gain, which could be its biggest since February.
The U.S. attacked Iran's Larak Island in the Strait of Hormuz on Sunday and Tehran.
ON BAYSTREET
The TSX Venture Exchange retreated 6.17 points, or 1.5%, to 982.99.
All but two of the 12 TSX subgroups were in the red, weighed most by materials, off 2%, while gold shed 1.9%, and industrials stepped back 1.2%.
The two gainers were telecoms, up 0.7%, and energy, rumbling 0.6%.
ON WALLSTREET
Stocks fell on Monday after the U.S. and Iran traded fire for the first time in a month, though the major averages were still pacing to close out August with gains.
The Dow Jones Industrials plunged 328.94 points to 53,230.05.
The S&P 500 waned 41.64 points to 7,670.86.
The NASDAQ Composite weakened 131.80 points to 26,270.63, dragged down by losses in Goldman Sachs and Alphabet
The Dow is up more than 1% month to date, putting the index on track for its fifth consecutive monthly advance. The S&P 500 and NASDAQ were headed for their first one-month increases since May, the S&P up about 2% and the NASDAQ ahead 3%, respectively. Both the S&P 500 and Dow also reached all-time highs earlier in August.
Investors will get more insight into the state of the economy this week, with the August jobs report due Friday morning. Monthly manufacturing and services sector data is also on deck.
On Sunday, U.S. Central Command confirmed to MS NOW that the U.S. struck two rocket launchers on Iran’s Larak Island.
Sunday’s attack was the first publicly acknowledged U.S. strike on Iranian positions since late July, with Iranian state media reporting that Tehran had attacked U.S. bases in Jordan in retaliation.
Prices for the 10-year Treasury were down, raising yields to 4.76% from Friday’s 4.73%. Treasury prices and yields move in opposite directions.
Oil prices vaulted $2.15 to $85.95 U.S. a barrel.
Gold prices flopped $50.90 to $4,479.00 U.S. an ounce.
