Canada's main stock index fell on Tuesday, closing down 0.5% at 34,653.87, as technology and financial stocks lost ground amid investor caution over the Iran conflict.
The decline snapped a four-day winning streak for the Toronto Stock Exchange's S&P/TSX composite index, which had reached a record high on Monday.
Technology stocks were among the hardest hit, falling 1.6%, with Constellation Software shares dropping 3.2%. The financial sector, the most heavily weighted on the index, ended 0.6% lower. Investors are wary as Canada's largest banks are set to report quarterly results, with profits expected to rise despite economic uncertainties.
“There's a sense of political exhaustion setting in, but Canadian investors are trying to continue with their long-term growth plans like most other environments we've seen in the past.”
Shiraz Ahmed, founder at Sartorial Wealth
Consumer staples fell 1.8%, while the materials group, including metal mining shares, was down 0.9%. The price of gold decreased by 1.4%, and oil settled 2.8% lower at $93.89 a barrel, despite recovering some earlier losses. Energy stocks managed a slight gain of 0.3%, recovering from Monday's sharp losses.
Iran accused the United States of violating a ceasefire after U.S. defensive strikes in southern Iran, with U.S. Secretary of State Marco Rubio indicating that negotiations to end the conflict could take several days.
Background
Canada's signing of a large-scale LNG agreement with Germany's SEFE for liquefied natural gas from the Ksi Lisims planned export facility in British Columbia highlights ongoing international trade developments.
Looking ahead, investors will closely monitor the upcoming earnings reports from Canada's major banks and any developments in the Iran conflict, which could further impact market sentiment.
