Canada's main stock index opened lower on Tuesday, as relief from U.S. President Donald Trump's decision to pause strikes on Iran's energy infrastructure faded, leaving investors grappling with uncertainty over the war.
The TSX capsized 175.52 points to commence Tuesday at 31,708.29.
The dollar nicked lower 0.09 cents to 72.74 cents U.S.
Oil prices firmed on the day on supply concerns after Iran denied holding talks with the U.S. to end the Gulf war, contradicting Trump's comments that a deal could be reached soon.
Now in its fourth week, the war has crippled key energy infrastructure across the Middle East and brought shipping through the Strait of Hormuz close to a standstill.
With crude among Canada's key exports, the country's stock market is especially vulnerable to shifts in oil prices, and the war has intensified inflation fears by lifting global energy costs.
In corporate news, TransAlta Corp, which owns a fleet of power-generation assets across Canada, will be in focus after National Bank of Canada upgraded its stock to "outperform" from "sector perform".
TransAlta shares kick-started the day up 72 cents, or 4.4%, to $17.23.
Jamieson Wellness Inc also drew attention as CIBC initiated coverage with an "outperformer" rating and a price target of $43.00. Jamieson shares grabbed a penny to $34.00.
ON BAYSTREET
The TSX Venture Exchange slid 8.51 points to 921.80.
All but three of the 12 TSX subgroups were lower Tuesday, weighed most by information technology, down 2.4%, while consumer discretionary and health-care stocks each lost 1.9%.
The three gainers were energy, better by 1.9%, while utilities eked higher 0.7%, and telecoms succeeded 0.2%.
ON WALLSTREET
U.S. equities pulled back on Tuesday, giving back some of the sharp gains seen in the previous session, as crude prices resumed their rally while the Iran war moved further into its fourth week.
The Dow Jones Industrials ditched some of Monday’s gains 186.04 points to 46,045.76.
The S&P 500 index slipped 28.77 points to 6,552.23
The NASDAQ dipped 185 points to 21,761.76.
The major averages all rose more than 1% on Monday after President Donald Trump said in a Truth Social post that the U.S. and Iran have held “very good and productive conversations regarding a complete and total resolution of our hostilities in the Middle East.” Iranian state media reported that there were no direct talks between the two countries, however.
Prices for the 10-year Treasury sagged, raising yields to 4.39% from Monday’s 4.35%. Treasury prices and yields move in opposite directions.
Oil prices regained $3.36 to $91.49 U.S. a barrel.
Gold prices lost $167.20 to $4,407.80 U.S. an ounce.
