Canadian Stocks Slide on Inflation Fears

The S&P/TSX Composite Index fell 1.1% to close at 35,506 on Thursday, as rising oil prices and higher bond yields added to inflationary pressures. Oil prices jumped as fears of prolonged energy supply disruptions intensified following the biggest wave of attacks on shipping in the Strait of Hormuz by Washington and Tehran on Wednesday. Global yields moved higher on concerns over prolonged inflation, weighing on equities. Falling gold prices pressured miners, with Agnico Eagle losing 2.8%, Barrick shedding 2.3%, and WPM falling 3.7%. Copper prices also declined, dragging Hudbay down 7.3% and Capstone 9.3%. Enbridge shed 3.7% after announcing it would buy Tallgrass Energy’s crude oil business, acquiring a majority stake in the Pony Express Pipeline and other assets.

The S&P/TSX Composite Index fell nearly 1% to trade below 36,000 on Thursday, reaching a five-week low as rising oil prices and higher bond yields added to inflationary pressures. Oil prices jumped as fears of prolonged energy supply disruptions intensified following the biggest wave of attacks on shipping in the Strait of Hormuz by Washington and Tehran on Wednesday. Global yields moved higher on fears of prolonged inflation, following hotter-than-expected US PPI data and ahead of Friday’s CPI report. Rising expectations for a Fed rate hike pressured credit-sensitive stocks, with most major banks trading below the flatline. Falling gold prices weighed on miners, with Agnico Eagle losing 2.5%, WPM falling 3%, and Barrick retreating more than 2%. Copper prices also fell, dragging Hudbay down more than 7.5%. Enbridge shed more than 3% after announcing it would buy Tallgrass Energy’s crude oil business, acquiring a majority stake in the Pony Express Pipeline and other assets.

Futures tracking Canadian stocks fell on Thursday amid elevated oil prices and bond yields. Oil extended its rally following the biggest wave of attacks on shipping in the Strait of Hormuz by Washington and Tehran on Wednesday. Global yields moved higher on fears of prolonged inflation, following stronger-than-expected US PPI and ahead of CPI data expected Friday. Rising expectations for a Fed rate hike pressured credit-sensitive stocks, while falling gold prices weighed on miners. Elsewhere, Enbridge said Wednesday it would buy Tallgrass Energy’s crude oil business for $2.55 billion in cash, expanding its US liquids pipeline network by acquiring a majority stake in the Pony Express Pipeline and other assets.