TSX Closes Lower on Hawkish Fed Outlook

The S&P/TSX Composite Index fell 0.7% to close at 34,041 on Wednesday as investors assessed the outlook for restrictive monetary policy and elevated energy prices. The stalling of US-Iran peace talks this week reduced expectations for a reopening of the Strait of Hormuz, while concerns over stagflation pressures and rising bond yields continued to weigh on banks and the broader market. BMO fell 1.4% and Royal Bank of Canada lost 1.2%. Meanwhile, gold prices extended declines after stronger-than-expected US producer prices reinforced expectations of tighter Federal Reserve policy, pressuring mining stocks. Agnico Eagle slipped 0.6% and Barrick dropped 2.1%. Elsewhere, Equinox Gold fell 2.1% after announcing plans to acquire Orla Mining (+0.8%) in a deal that would create a North America-focused gold producer valued at roughly $18.5 billion. Boyd Group slumped 12% after first-quarter sales missed forecasts.

The S&P/TSX Composite Index fell more than 0.5% to trade below 34,500 on Wednesday amid expectations of restrictive monetary policy and high energy prices. The stalling of US-Iran peace talks this week reduced expectations for a reopening of the Strait of Hormuz. Concerns over broader stagflation pressures and higher bond yields continued to weigh on banks and the broader market. BMO and the Royal Bank of Canada shed near 0.5%. Meanwhile, gold prices extended declines after higher-than-expected US producer prices reinforced expectations of tighter Federal Reserve policy, pressuring mining stocks. Agnico Eagle and Barrick were down nealy 2%. In other news, Equinox Gold lost near 5% after it announced plans to acquire Orla Mining (-2%) in a deal that would create a North America-focused gold producer with an implied market value of roughly $18.5 billion. Boyd Group gained near 1% after it reported a 28% increase in first-quarter sales, though results slightly missed forecasts.

Futures tracking the S&P/TSX Composite Index edged lower on Wednesday amid expectations of restrictive monetary policy and high energy prices. The stalling of US-Iran peace talks this week reduced expectations for a reopening of the Strait of Hormuz. Concerns over broader stagflation pressures and higher bond yields continued to weigh on banks and the broader market. Meanwhile, gold prices extended declines after higher-than-expected US producer prices reinforced expectations of tighter Federal Reserve policy, pressuring mining stocks. In other news, Equinox Gold announced plans to acquire Orla Mining in a deal that would create a North America-focused gold producer with an implied market value of roughly $18.5 billion. Boyd Group reported a 28% increase in first-quarter sales, though results slightly missed analyst forecasts