Canadian stocks witnessed increased volatility on Tuesday as sharp declines in commodity prices amid the ongoing geopolitical tensions kept investors on edge, while markets awaited key U.S. inflation data and the Bank of Canada’s (BoC) rate decision. The S&P/TSX Composite Index fell 67 points, or 0.2%, to settle at 34,412, continuing an unusual streak in which the benchmark has alternated between gains and losses in each of the last eight trading sessions.
Although several key market sectors like real estate, consumer staples, and financials showed strength, steep declines in mining and energy stocks dragged the TSX benchmark lower.
Top TSX Composite movers and active stocks
5N Plus, Energy Fuels, Silvercorp Metals, and Tamarack Valley Energy were the day’s worst-performing TSX stocks, as they plunged by at least 5.5% each.
On the brighter side, TerraVest Industries, Gildan Activewear, Killam Apartment REIT, and NFI Group climbed by at least 3.3% each, making them the top-performing TSX stocks for the day.
IGM Financial (TSX:IGM) also rose more than 1% to $81.32 per share after its subsidiary, IG Wealth Management, announced it would no longer proceed with the previously proposed merger of two U.S. small-to-mid-cap equity funds.
The wealth management firm said the proposal, originally unveiled in February, has been withdrawn as part of its ongoing efforts to manage and refine its investment product lineup. Investors appeared to view the update as a sign of management’s disciplined approach to product strategy and client-focused offerings. On a year-to-date basis, IGM stock is now up around 23%.
According to the exchange’s daily trade volume data, Canadian Natural Resources, Telus, Enbridge, Suncor Energy, and BlackBerry were the five most active stocks on the Toronto Stock Exchange.
TSX today
Commodity prices across the board, including crude oil and precious metals, fell sharply in early trading on Wednesday, even though renewed tensions in the Middle East resurfaced after the U.S. launched strikes on Iranian military sites in response to the downing of an American military helicopter near the Strait of Hormuz. These negative signals from the commodity markets could pressure the TSX index at the open today.
The latest escalation has raised fresh concerns about the stability of the region and the outlook for global energy supplies, although investors appear to be taking comfort from signals that both Washington and Tehran still prefer negotiations over a broader military conflict.
Canadian market participants will also closely watch the BoC’s latest rate decision and the U.S. consumer inflation report for May this morning, as both could influence broader market sentiment. While the Canadian central bank is widely expected to leave its benchmark interest rate unchanged, TSX investors will be looking for clues about the timing of any future policy easing.
On the corporate events front, the TSX-listed North West Company will release its latest quarterly earnings report today.
Market movers on the TSX today
