Stocks in Toronto enjoyed small gains Tuesday, after deep dives Monday, as uncertainty over the war in Iran continued to cast clouds over the markets.
The TSX recovered 57.78 points to close Tuesday at 31,941.59.
The dollar demurred 0.18 cents to 72.65 cents U.S.
Oil prices firmed on the day on supply concerns after Iran denied holding talks with the U.S. to end the Gulf war, contradicting Trump's comments that a deal could be reached soon.
Now in its fourth week, the war has crippled key energy infrastructure across the Middle East and brought shipping through the Strait of Hormuz close to a standstill.
With crude among Canada's key exports, the country's stock market is especially vulnerable to shifts in oil prices, and the war has intensified inflation fears by lifting global energy costs.
In corporate news, Dollarama fell $17.92, or 9.6%, to $158.86, after forecasting 2027 sales largely below estimates. Elsewhere in consumer stocks, Restaurant Brands descended $1.28, or 1.2%, to $101.66.
In health-care, Bausch Health Companies retreated 14 cents, or 2%, to $6.88, while units of Chartwell Retirement Residences forked over 29 cents, or 1.5%, to $19.58.
In techs, Docebo ditched $1.35, or 5%, to $25.54, while Kinaxis fell $6.15, or 4.4%, to $133.99.
Shares of non-prime lender goeasy rose $1.12, or 2.9%, to $39.94, after its lenders waived compliance with certain fourth-quarter financial covenants, following the company’s disclosure of about $178 million in chargeoffs and write downs tied to its LendCare unit.
TransAlta Corp, which owns a fleet of power-generation assets across Canada, will be in focus after National Bank of Canada upgraded its stock to "outperform" from "sector perform".
TransAlta shares shot up $1.07, or 6.5%, to $17.58.
Jamieson Wellness Inc also drew attention as CIBC initiated coverage with an "outperformer" rating and a price target of $43.00. Jamieson shares grabbed 58 cents, or 1.7%, to $34.57.
ON BAYSTREET
The TSX Venture Exchange regained 8.5 points to 938.81.
The 12 TSX subgroups were evenly split Tuesday, led by energy, surging 1.6%, materials, gaining 1.3%, while gold took on 1%.
The half-dozen laggards were weighed most by consumer discretionary stocks, shedding 2.1%, health-care, down 1.4%, and information technology, off 1.2%.
ON WALLSTREET
The S&P 500 pulled back on Tuesday, giving back some of the sharp gains seen in the previous session, as crude prices rose again while the Iran war moved further into its fourth week.
The Dow Jones Industrials sank 84.84 points to 46,123.63
The much broader index sank 24.67 points to 6,556.34
The NASDAQ dipped 184.87 points to 21,761.76.
The major averages all rose more than 1% on Monday after President Donald Trump said in a Truth Social post that the U.S. and Iran had held “very good and productive conversations regarding a complete and total resolution of our hostilities in the Middle East.”
Iranian state media reported that there were no direct talks between the two countries, however.
Trump over the weekend had threatened an attack on Iranian power plants if the Strait of Hormuz wasn’t reopened. Iran, in turn, said that it would target U.S. infrastructure as a retaliatory tactic.
Prices for the 10-year Treasury sagged, raising yields to 4.39% from Monday’s 4.35%. Treasury prices and yields move in opposite directions.
Oil prices skyrocketed $3.54 to $91.67 U.S. a barrel.
Gold prices fell $6.70 to $4,400.60 U.S. an ounce.
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