Equities in Canada’s main stock index fell on Friday amid broad declines across sectors and was on track for a third straight weekly loss, as the escalating conflict in the Middle East showed no signs of cooling.
The TSX dropped 394.89 points, or 1.2%, to start Friday afternoon at 31,460.09
The dollar inched up 0.03 cents to 72.83 cents U.S.
The U.S. is considering plans to occupy or blockade Iran's Kharg Island to pressure the country into reopening the Strait of Hormuz, an Axios report said, even as Israel and Iran traded fresh attacks on Friday.
Leading European nations, Japan and Canada have issued a joint statement that they are ready to join efforts to secure safe passage for shipping through the crucial waterway, as supply disruptions send crude oil and natural gas prices soaring.
Among individual stocks, Interfor Corp. will rate attention, with CIBC raising the lumber producer's rating to "neutral" from "underperform," and dealership operator AutoCanada, whose rating the brokerage downgraded to "neutral" from "outperform."
Interfor shares inched higher 14 cents, or 1.6% to $8.71, while those for AutoCanada gained a penny to $17.01.
Friday is a busy day economically speaking, with January retail trade up 1.1% to $70.7 billion. Sales were up in six of nine subsectors, led by increases at motor vehicle and parts dealers.
February’s new housing price index tacked on 0.3%, in contrast with a 0.4% loss in the prior-year month.
As well, Statistics Canada reported its raw materials price index increased by 0.6% month over month in February and rose 8.6% year over year. while its industrial product price index increased 0.4% month over month in February and gained 5.4% year over year.
ON BAYSTREET
The TSX Venture Exchange withered 18.32 points, or 2%, to 919.86.
All but one of the 12 TSX subgroups were lower midday, as gold dumped 3.1%, materials were off 2.8%, and%, and information technology
spilled 1.6%.
The lone gainers were in consumer staples, and energy, each up 0.2%.
ON WALLSTREET
Stocks fell on Friday as traders kept monitoring the Iran war, with the major averages on pace to record another losing week.
The Dow Jones Industrials sagged 217.58 points to 45,803.85.
The S&P 500 index fell 48.35 points to 6,558.14
The NASDAQ reversed 227.90 points, or 1%, to 21,857.76.
FedEx’s fiscal third quarter earnings beat is sending its stock 1.6% higher in noon hour trading, and Bank of America sees even more upside ahead.
The moves come after Iran and Israel exchanged strikes overnight, while the former also launched new attacks against energy sites in the Persian Gulf region. The Wall Street Journal reported, citing U.S. officials, that the Pentagon is sending thousands of additional Marines to the Middle East.
President Donald Trump also continued his attacks on NATO, calling it a “paper tiger” without the U.S. “Now that fight is Militarily WON, with very little danger for them, they complain about the high oil prices they are forced to pay, but don’t want to help open the Strait of Hormuz, a simple military maneuver that is the single reason for the high oil prices,” he said in a Truth Social post.
Prices for the 10-year Treasury decreased, raising yields back to 4.37% from Thursday’s 4.26%. Treasury prices and yields move in opposite directions.
Oil prices regrouped $1.29 to $97.43 U.S. a barrel.
Gold prices gave back $25.60 to $4,580.10 U.S. an ounce.
