Canada's main stock index opened lower on Thursday at its lowest level in more than a month, as rising oil prices and higher bond yields fueled concerns about persistent inflation, while investors also assessed U.S. producer inflation data.
The TSX dumped 303.69 points to stumble into the opening Thursday at 35,602.87.
The Canadian dollar dipped 0.10 cents to 72.34 cents.
Pipeline operator Enbridge said on Wednesday it will buy Tallgrass Energy's crude oil business for $2.55 billion in cash, expanding its U.S. liquids pipeline network by buying a majority stake in the Pony Express Pipeline and other assets.
U.S. President Donald Trump threatened to hit Iran's Pickaxe Mountain, a site associated with the Islamic Republic's nuclear program, and said that he expects the war to end after the midterm elections in the U.S.
ON BAYSTREET
The TSX Venture Exchange dipped 16.65 points, or 1.7%, to 940.33
Six of the 12 subgroups fell in the first hour, weighed most by materials, down 3.5%, gold, sliding 3.1%, and information technology, off 0.7%.
The five gainers were led by energy, up 0.7%, consumer staples, up 0.6%, and financials, better by 0.2%.
Health-care stocks were unchanged.
ON WALLSTREET
Stocks dropped Thursday after U.S. oil prices topped $100 a barrel, amid growing fears of higher inflation from a prolonged war in the Middle East.
The Dow Jones Industrials dipped 161.51 points to 52,219.15.
The S&P 500 sank 40.97 points to 7,596.85
The NASDAQ Composite retreated 190.52 points to 26,062.82.
Higher oil prices continued to weigh on sentiment, as the war between the U.S. and Iran stretched into a seventh month. U.S. West Texas Intermediate futures for October jumped above $100 per barrel. Futures for the international benchmark Brent crude for November delivery spiked above $105 a barrel.
The jump in oil prices pushed the 10-year Treasury yield above 4.9%, the highest level since November 2023.
High beta chip stocks that have led the bull market traded lower on fears higher rates and oil could slow the economy. Intel decreased 3% and Micron Technology fell 2%.
The major averages are coming off a three-day slide, after the Treasury Department said it would buy back up to $6 billion in longer-term debt – triple the usual amount. Less than a month ago, the Treasury said it would more than double the size of its $2-billion government debt repurchases.
Prices for the 10-year Treasury were lower, raising yields to 4.92% from Wednesday’s 4.84%. Treasury prices and yields move in opposite directions.
Oil prices added $3.63 to $99.68 U.S. a barrel.
Gold prices slid $54.60 to $4,406.10 U.S. an ounce.
