Equities all over North America felt the hard hand of war Thursday, as tensions continued to escalate. over the future of the conflict in Iran.
The TSX retreated 279.23 points to finish a wild session Thursday at 32,840.66
The dollar sank 0.14 cents to 73.37 cents U.S.
Financials dropped almost 1.1%, with shares of major banks including BMO Financial, dropping $3.56, or 1.8%, to $189.43, and Bank of Nova Scotia down $1.58, or 1.6%, to $95.36. Canadian non-prime consumer lender goeasy tumbled $5.65 or 13.9%, to $35.02, extending sharp losses from the previous two sessions.
RBC upgraded its rating on Kinross Gold to "outperform" from "sector perform". Kinross shares regained seven cents to $44.33.
Health-care stocks took it on the chin, Bausch Health Companies flopped 48 cents, or 6.5%, to $6.89, while units of Chartwell Retirement Residences dipped 45 cents, or 6.5%, to $6.89.
Among industrials, MDA Inc. faltered $3.25, or 7.2%, to $42.19, while TFI International collapsed $10.45, or 6.9%, to $140.34.
In tech issues, Docebo capsized $3.86, or 12.6%, to $20.79, while Coveo Solutions lost 27 cents, or 5.3%, to $4.82.
Energy stocks did what they could to pick up the slack, with Canadian Natural Resources hiking $2.02, or 3.2%, to $66.20, Parex Resources advancing 92 cents, or 3.8%, to $25.74.
In utilities, Capital Power jumped $1.14, or 1.9%, to $62.13, while Fortis grew $1.23, or 1.6%, to $79.16.
Consumer staples showed narrow gains, with Alimentation Couche-Tard better by 80 cents, or 1%, to $81.60, while George Weston climbed 52 cents, or 0.6%, to $95.88.
Foreign Minister Anita Anand said foreign ministers from the Group of Seven will meet in Paris on March 24 and 25 to discuss diplomatic efforts to end the Iran crisis.
Thursday was 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 29.11 points, or 2.7%, to 1,047.05.
All but three of the 12 TSX subgroups went lower, weighed most by health-care, hesitating 2.2%, industrials, weaker by 1.8%, and information technology, off 1.6%.
The three gainers were energy, ahead 2.2%, utilities, adding 0.7%, and consumer staples, eking up 0.01%.
ON WALLSTREET
Stocks 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 cratered 739.66 points, or 1.6%, to close Thursday at 46,677.61.
The S&P 500 index tumbled 103.22 points, or 1.5%, to 6,672.58.
The NASDAQ flopped 404.16 points, or 1.8%, to 22,311.98.
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 9.72% higher to settle at $95.73 per barrel. Brent crude futures settled up 9.22% to $100.46 per barrel — its first close above $100 since August 2022.
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 lower, boosting yields to 4.26% from Wednesday’s 4.23%. Treasury prices and yields move in opposite directions.
Oil prices climbed $9.19 to $96.44 U.S. a barrel.
Gold prices dumped $79.50 to $5,089.90 U.S. an ounce.
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