Canada's main stock index recovered midday on Tuesday, as relief from U.S. President Donald Trump's decision to pause strikes on Iran's energy infrastructure faded, leaving investors grappling with uncertainty over the war.
The TSX recovered 201.47 points to move into Tuesday afternoon at 32,085.28.
The dollar demurred 0.14 cents to 72.69 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 $14.38, or 7.7%, to $172.20, after forecasting 2027 sales largely below estimates.
Shares of non-prime lender goeasy rose $2.05, or 5.3%, to $40.87, 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 $1.18, or 7.2%, to $17.69.
Jamieson Wellness Inc also drew attention as CIBC initiated coverage with an "outperformer" rating and a price target of $43.00. Jamieson shares grabbed 47 cents, or 1.4%, to $34.46.
ON BAYSTREET
The TSX Venture Exchange regained 2.27 points to 932.58.
Eight of the 12 TSX subgroups had moved into positive country by noon EDT, with energy rumbling 3%, utilities improving 1.4%, and materials up 1.2%.
The four laggards were weighed most by information technology, skidding 1.7%, health-care, dipping 1.3%, and consumer discretionary stocks, off 1.2%.
ON WALLSTREET
The S&P 500 was relatively unchanged on Tuesday as the index attempted to build on the strong gains seen in the previous session.
The Dow Jones Industrials recovered 153.11 points to 46,361.58.
The much broader index eked up 8.58 points to 6,589.58
The NASDAQ dipped 185 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 have 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.
Prices for the 10-year Treasury sagged, raising yields to 4.37% from Monday’s 4.35%. Treasury prices and yields move in opposite directions.
Oil prices regained $3.26 to $91.39 U.S. a barrel.
Gold prices picked up $12.80 to $4,420.10 U.S. an ounce.
