TSX dips on Middle East conflict concerns
Canada's main stock index fell on Thursday, as caution prevailed over heightened tensions in the Middle East and the United States' possible involvement in the conflict.
The S&P/TSX composite index was down 0.2% at 26,510.63 points.
Israel bombed nuclear targets in Iran on Thursday and Iranian missiles hit an Israeli hospital overnight, as the week-old air war escalated with no sign yet of an off-ramp.
President Donald Trump, meanwhile, has kept the world guessing about whether the U.S. would join Israel in the airstrikes.
'There is potential for the U.S. to become more involved, which is not desirable, and I think that the overall escalation of the conflict period is definitely weighing down global sentiment,' said Shiraz Ahmed, founder & CEO at Sartorial Wealth Inc.
The conflict has impacted oil prices, which rose on the day and boosted the energy sector by 0.6%.
On the flip side, healthcare stocks were the biggest decliner, down 0.9%, with pharmaceutical firm Bausch Health companies falling 2.4%.
Information and Technology fell 0.7%. Materials dropped 0.6% as gold prices held steady while copper hit a near one-week low. Most other base metals also declined, pressured by a stronger U.S. dollar. GOL/MET/L
The benchmark index shed most of its gains to end almost flat on Wednesday after Federal Reserve Chair Jerome Powell said inflation in goods prices is expected to go up over the summer as Trump's tariffs work their way to consumers.
Also on Wednesday, Bank of Canada Governor Tiff Macklem said that the prospect of a new Canada-U.S. trade deal offers hope that tariffs will be removed, but cautioned that inflation could rise if tariffs remain in place.
Trump and Canada's Prime Minister Mark Carney this week agreed to reach a trade deal between the two countries in 30 days.
Among individual stocks, food retailer Empire Company Ltd jumped 5.4% to the top of TSX after reporting quarterly profit above the analyst's estimates.
Trade volumes are expected to remain thin as U.S. markets are closed for a public holiday.
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