Canada's main stock index was little changed on Tuesday as worries about increasing tensions in the Middle East were overcome by gains in the natural resource sectors.
The S&P/TSX composite index was in the red 3.33 points to close at 15,125.67, after a tumble of more than 130 points Monday.
The Canadian dollar turned negative 0.22 cents to 90.34 cents U.S.
The Toronto equity market, which sold off sharply in the previous two sessions, opened lower but failed to establish a clear direction. The geopolitical tensions fueled a rise in volatility.
Shares of energy producers climbed, with Canadian Natural Resources rising 0.9% to $43.93 though Suncor Energy turned south 0.2% to $41.24.
The gold-mining sector shone, as Goldcorp advanced 1.5% to $26.13, and Barrick Gold climbed 1.1% to $17.19.
Among financials, Bank of Montreal shed 0.2% to $84.06.
In the consumer staples sector, Alimentation Couche-Tard surged $1.13, or 3.3%, to $35.66, while supermarket chain Metro eked up 0.4%, to $74.06.
Interest rates may have to be about one-and-a-half percentage points lower than they have been historically in order for the Canadian economy to operate at full capacity, the Bank of Canada said on Monday.
On the economic beat, Statistics Canada reported this morning that retail sales paused in July, edging down 0.1% to $42.5 billion, this, after six straight monthly gains.
ON BAYSTREET
The TSX Venture Exchange slid 2.91 points to 925.18.
Eight of the 14 Toronto subgroups ended the day positive, with gold up 2.3%, materials ahead 1.3%, and consumer staples prevailing 0.5%.
The six laggards were weighed mostly by industrials and information technology, sliding 0.4% each, and health-care, off 0.3%.
ON WALLSTREET
U.S. stocks declined for the third straight session on Tuesday as fears over global growth and escalating war in the Middle East sent investors scrambling for havens like U.S. Treasurys.
The Dow Jones Industrials tumbled 116.81 points to 17,055.87
The S&P 500 dipped 11.52 points to 1,982.77. The NASDAQ faltered 19 points to 4,508.69.
Alibaba Group Holding Ltd. fell 3% after a more than 4% drop in the U.S. regular session on Monday.
CF Industries Holdings Inc. shares rose 5.3% after it confirmed merger talks with Norwegian chemical company Yara International.
Google Inc. shares fell 1.1% after the European Union’s competition chief said the search company must improve its proposed settlement over antitrust concerns or face formal charges.
In economic data, U.S. home prices inched up in July, but growth slowed down, according to data released Tuesday.
The "flash" reading of U.S. manufacturing conditions was unchanged in September, keeping the index at a 52-month high, according to data released by Markit Tuesday.
Perhaps the biggest drag on the market mood was weak European data, which overshadowed better-than-expected Chinese manufacturing numbers. U.S. airstrikes in Syria on Monday evening against extremist fighters, known as the Islamic State, reminded traders of heightened geopolitical risks.
Prices for 10-year U.S. Treasuries gained ground, lowering yields to 2.54% from Monday’s 2.57%. Treasury prices and yields move in opposite directions.
Oil prices recovered 70 cents to $91.57 U.S. a barrel.
Gold prices moved up five dollars to $1,222.90 U.S. an ounce.
