Canada's main stock index fell to its lowest in more than a month on Thursday, as rising oil prices and higher bond yields fueled concerns about persistent inflation, while weaker precious metal and copper prices added further pressure.
The TSX backtracked 273.14 points to reach noon hour Thursday at 35,633.42.
The Canadian dollar dipped 0.05 cents to 72.39 cents.
Pipeline operator Enbridge said on Wednesday it will buy Tallgrass Energy's crude oil business for $2.55 billion in cash, expanding its U.S. liquids pipeline network by buying a majority stake in the Pony Express Pipeline and other assets.
Enbridge shares subsided $2.23, or 3.2%, to $67.05.
Miners led losses on the benchmark with Capstone Copper sliding $2.23, or 3.2%, to $67.05, and Hudbay Minerals down $3.02, or 7.6%, to $36.80.
U.S. President Donald Trump threatened to hit Iran's Pickaxe Mountain, a site associated with the Islamic Republic's nuclear program, and said that he expects the war to end after the midterm elections in the U.S.
ON BAYSTREET
The TSX Venture Exchange dipped 18.88 points, or 2%, to 938.10
All but three of the 12 subgroups fell by noon, weighed most by materials, down 2.9%, and gold, failing 2.1%, utilities, off 1.1%,
The three gainers were industrials, up 0.3%, financials, eking up 0.1%, and information technology, inching ahead 0.02%.
ON WALLSTREET
Stocks dropped Thursday after U.S. oil prices topped $100 a barrel, amid growing fears of higher inflation from a prolonged war in the Middle East.
The Dow Jones Industrials dipped 199.70 points to 52,180.96.
The S&P 500 sank 25.88 points to 7,610.48
The NASDAQ Composite retreated 110.03 points to 26,143.31.
Higher oil prices continued to weigh on sentiment, as the war between the U.S. and Iran stretched into a seventh month. U.S. West Texas Intermediate futures for October jumped above $100 per barrel. Futures for the international benchmark Brent crude for November delivery spiked above $105 a barrel.
High beta chip stocks that have led the bull market traded lower on fears higher rates and oil could slow the economy. Intel and Micron Technology each fell 4%.
The major averages are coming off a three-day slide, after the Treasury Department said it would buy back up to $6 billion in longer-term debt – triple the usual amount. Less than a month ago, the Treasury said it would more than double the size of its $2-billion government debt repurchases.
Prices for the 10-year Treasury were lower, raising yields to 4.92% from Wednesday’s 4.84%. Treasury prices and yields move in opposite directions.
Oil prices added $4.31 to $100.36 U.S. a barrel.
Gold prices slid $53.70 to $4,407 U.S. an ounce.
