Equities in Canada’s largest market fell at open on Thursday with heavyweight financials leading declines as escalating Middle East tensions hurt risk sentiment, while higher crude prices intensified inflation worries.
The TSX dropped 58.32 points to begin Thursday at 33,061.51.
The dollar sank 0.02 cents to 73.49 cents U.S.
RBC upgraded its rating on Kinross Gold to "outperform" from "sector perform". Kinross shares prospered 32 cents to $44.58.
A busy day on the macroeconomic calendar.
Statistics Canada reported building permits increased $607.0 million (+4.8%) to $13.3 billion.
Wholesale trade fell 1.0% in January, on lower sales reported by companies in the motor vehicle and motor vehicle parts and accessories subsector, as well as the mineral, ore and precious metals industry group. and exports decreased 4.7%, while imports were down 1.1%.
As a result, Canada's merchandise trade deficit with the world widened from $1.3 billion in December to $3.6 billion in January.
Canada’s labour force index is due for February on Friday.
ON BAYSTREET
The TSX Venture Exchange decreased 11.22 points, or 1%, to 1,064.94.
ON WALLSTREET
Stocks south of the border were under pressure on Thursday as oil prices added to their surge on supply disruption worries while the Iran war continued.
The Dow Jones Industrials dived 563.70 points, or 1.2%, to begin trade Thursday at 46,853.57.
The S&P 500 index lost 69.53 points to 6,706.27.
The NASDAQ tumbled 311.45 points, or 1.4%, to 22,404.69.
Crude prices continued to climb after Iran’s new Supreme Leader Mojtaba Khamenei — who was appointed on March 9 — said that the Strait of Hormuz should remain closed as “tool to pressure the enemy.” West Texas Intermediate futures traded 9% higher at around $95 per barrel.
Brent crude futures advanced 8% to roughly $100 per barrel.
Energy Secretary Chris Wright told reporters Thursday that the U.S. Navy is “not ready” to escort oil tankers through the Strait, though he said it will likely be able to do so by the end of the month. Traffic there has practically reached a standstill as the conflict in the Middle East escalates.
Overnight, three additional foreign vessels were hit in the Persian Gulf, according to authorities. That comes after three separate ships, including one in the Strait, had been struck Wednesday.
Selling was broad on Thursday, with banks and tech stocks in the red. Morgan Stanley led financials lower after capping private credit fund withdrawals. Energy stocks, including Chevron and Exxon Mobil, were among the few stocks in the green.
Prices for the 10-year Treasury were static, keeping yields at Wednesday’s 4.23%.
Oil prices climbed $7.51 to $94.76 U.S. a barrel.
Gold prices dumped $12.20 to $5,166.90 U.S. an ounce.
Related Stories
