Canadian stocks joined in the general malaise Wednesday, as investors were unnerved by the prospect of another chapter in the conflict between the U.S. and Iran.
The TSX Composite Index decreased 260.37 points to conclude Wednesday at 34,151.32.
The Canadian dollar nosed ahead 0.05 cents to 71.71 cents U.S.
U.S. President Donald Trump said on Wednesday Iran had taken too long to negotiate a deal and would now "have to pay the price," while Tehran said it would reassess diplomatic engagement with Washington after tit-for-tat strikes overnight.
Thomson Reuters gained 36 cents to $114.51, as the content and technology firm faces a shareholder vote at its annual meeting over its U.S. government contracts for services that some investors and employees say may help power the Trump administration's crackdown on undocumented immigrants.
Gold weighed most heavily on the index, with Seabridge Gold collapsing $3.81, or 9.9%, to $35.02, while Wesdome Gold tailed off $2.16, or 8.6%, to $23.11.
Among materials, Capstone Copper dropped 83 cents, or 6.1%, to $12.69, while Aris Mining lost $1.26, or 6%, to $19.75.
In the health-care field, Curaleaf subsided 54 cents, or 3.6%, to $14.49, while Sienna Senior Living stepped back 18 cents to $21.51.
Energy stocks, however, moved to the fore, Kelt Exploration gaining 43 cents, or 4.5%, to $10.07, while Strathcona Resources powered ahead $2.26, or 5.1%, to $47.05.
In techs, Constellation Software popped $168.35, or 5.7%, to $3,143.70, while Sangoma Technologies gained 22 cents, or 4.6%, to $4.99.
In telecoms, Rogers Communications grabbed $1.53, or 2.9%, to $53.88, while Quebecor picked up 54 cents to $68.58.
The Bank of Canada today held its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%.
ON BAYSTREET
The TSX Venture Exchange fell 20.89, or 2.2%, to 912.17.
Seven of the 12 TSX subgroups were in the red by the close, weighed most by gold, down 4.8%, materials, sliding 3.9%, and health-care, off 1.3%.
The five gainers were led by energy, surging 1.8%, while information technology grabbed 0.6%, and telecoms gathered 0.4%.
ON WALLSTREET
U.S. equities fell on Wednesday after President Donald Trump signaled that negotiations with Iran were taking “too long” and threatened more action.
The Dow Jones Industrials plunged 952.9 points, or 1.9%, to 49,919.21.
The S&P 500 index dipped 119.57 points, or 1.6%, to 7,267.08
The NASDAQ dumped 509.32 points, or 2%, to 25,169.50.
Trump wrote early Wednesday that Iran has “taken too long to negotiate a deal that would have been great for them, now they will have to pay the price!!!.”
Tensions in the Middle East ramped up again Tuesday evening, after U.S. forces launched strikes against Iran “in response to [Monday’s] downing of a U.S. Army Apache helicopter,” U.S. Central Command said. Trump had earlier accused Iran of shooting down the helicopter, which he said was patrolling over the Strait of Hormuz.
Chip stocks came under pressure once again Wednesday. Shares of Micron Technology, Advanced Micro Devices and Broadcom were lower, falling for the fourth day in five.
Equities were off the lows after May’s core consumer price index reading, excluding food and energy prices, was a bit lighter than expected.
For the month, core CPI came in at 0.2%, below the 0.3% estimate, according to the Bureau of Labor Statistics.
Compared to a year ago, core CPI stood at 2.9%, in line with expectations, but above the Federal Reserve’s 2% inflation target.
Prices for the 10-year Treasury were lower, raising yields to 4.55% from Tuesday’s 4.53%. Treasury prices and yields move in opposite directions.
Oil prices jumped $2.31 to $90.51 U.S. a barrel.
Gold prices tumbled $175.30 to $4,112.10 U.S. an ounce.
