TSX Edges Lower at Week End

The S&P/TSX Composite Index fell around 0.3% to below the 31,850 mark on Friday as intensifying geopolitical friction in the Middle East and a hawkish shift in central bank expectations weighed on the resource-heavy market. Investors reacted to President Trump extending a deadline for Iran to reopen the Strait of Hormuz to April 6th, bolstering crude oil prices and stoking broader stagflation fears and pushed Canadian bond yields higher. While energy majors like Canadian Natural Resources and Suncor rose over 2% on war-driven supply concerns, the banking sector faced significant headwinds with RBC, TD, and BMO all posting losses amid rising credit demand risks. Shopify and Cameco also struggled, falling nearly 3%, reflecting a cautious environment as the Bank of Canada navigates permanent structural shifts in the economic landscape.

Futures tracking the S&P/TSX Composite Index tumbled on Friday as uncertainty around a Middle East resolution kept investors concerned. US President Donald Trump extended his deadline for Iran to reopen the Strait of Hormuz to April 6th, warning that the country will face attacks on its energy infrastructure if it fails to comply. Oil prices rose further on war-driven supply concerns, fueling stagflation worries. Canadian bond yields climbed amid the inflationary pressures as investors price in an increasingly hawkish outlook for major central banks, weighing on banking stocks as credit demand could face headwinds. In contrast, gains in oil and gold prices supported energy producers and miners in the resource-heavy market. In other news, the BoC warned Thursday that it faces a tough job navigating structural shifts that will permanently reshape the country's economic landscape.

The S&P/TSX Composite Index tumbled 1.5% on Thursday to close at 31,888 as hardening geopolitical tensions and surging energy prices fueled global stagflation concerns. Market sentiment soured following President Trump’s warning that Iran must get serious which overshadowed previous hopes for a peace deal. The resulting 5% jump in Brent crude supported domestic energy producers with Suncor Energy and Cenovus Energy advancing 0.7%. However these gains were offset by a broad retreat in the financial and mining sectors as rising Treasury yields pressured equities. Royal Bank of Canada and TD Bank both shed over 1.2% while Bank of Montreal slumped 3.1% and CIBC lost 2.8%. Miners also faced heavy selling pressure with Agnico Eagle dropping 1.9% and Barrick Gold falling 3.8% while Cameco slid 4%. Additionally Shopify fell 2.5% as investors recalibrated growth expectations amid a higher interest rate outlook and geopolitical uncertainty.