Canada's main stock index fell on Wednesday after as renewed U.S.-Iran tensions cast doubts on prospects for a deal to end the war, while the Bank of Canada kept interest rates unchanged as expected.
The TSX Composite Index decreased 149.53 points to break for lunch Wednesday at 34,262.16.
The Canadian dollar gained 0.12 cents to 71.78 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 38 cents to $115.25, 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.
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 15.01, or 1.6%, to 918.05.
Seven of the 12 TSX subgroups were in the red midday, weighed most by gold, down 4.3%, materials, sliding 3.7%, and consumer discretionary, off 0.7%.
The five gainers were led by energy, surging 2%, while consumer staples progressed 0.8%, and utilities took on 0.5%.
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 sank another 547.82 points, or 1.1%, to 50,309.11.
The much-broader S&P 500 index dipped 62.91 points to 7,323.74.
The tech-heavy NASDAQ dumped 371.20 points, or 1.2%, to 25,371.20.
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, also hitting stocks. 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 static, keeping yields at Tuesday’s 4.53%.
Oil prices jumped $2.34 to $90.54 U.S. a barrel.
Gold prices tumbled $133.20 to $4,153.20 U.S. an ounce.
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