Canadian Stocks Retreat from Record Highs

The S&P/TSX Composite Index fell 1% to close at 34,801 on Wednesday, retreating from the record high reached in the previous session as renewed hostilities between the US and Iran dampened hopes for a peace deal. Tensions escalated after Iranian attacks targeted Kuwait and Bahrain, while the US carried out strikes near the Strait of Hormuz. Oil prices rose, reviving concerns about energy-driven inflation and higher borrowing costs. Financial stocks traded lower, with BMO down 1.5%, while Brookfield lost 3.4% after announcing a joint venture with a Concert Properties affiliate involving an industrial portfolio valued at roughly $1 billion. Mining shares also weighed on the index as gold prices declined, with Agnico Eagle falling 3.6%, Barrick losing 2.5%, and WPM shedding 3.5%. Technology stocks followed losses on Wall Street, with Shopify down 3% and Constellation Software retreating 4.7%.

The S&P/TSX Composite Index fell more than 0.5% to trade below 35,000 on Wednesday, pulling back from the record high reached in the previous session as a fresh exchange of strikes between the US and Iran dampened hopes for a peace deal. Oil prices rose amid renewed doubts over an agreement that could reopen the Strait of Hormuz, reviving concerns about energy-driven inflation and higher borrowing costs. Financial stocks traded lower, with BMO down nearly 0.5%. Mining shares also weighed on the index as gold prices declined, with Agnico Eagle losing more than 2%, Barrick falling over 1%, and WPM down more than 1.5%. Shopify shed nearly 3% despite announcing a new $3 billion share buyback program. Meanwhile, Canada's minister responsible for Canada-US trade, Dominic LeBlanc, described ongoing discussions on the review of the countries' free trade agreement as constructive, though few details were provided.

Futures tracking the S&P/TSX Composite Index edged lower on Wednesday after the benchmark reached a record high in the previous session, as a fresh exchange of strikes between the US and Iran dampened hopes for a peace deal. Oil prices rose amid renewed doubts over the prospects of an agreement that could reopen the Strait of Hormuz, reviving concerns about energy-driven inflation and higher borrowing costs. Meanwhile, gold prices declined, pressuring mining stocks. In corporate news, Shopify announced that its board had approved an additional $3 billion share repurchase program. On the trade front, Canada's minister responsible for Canada-US trade, Dominic LeBlanc, said talks with US officials on the review of the countries' free trade agreement were constructive, though he provided few details on the discussions.