Middle East Tensions Weigh On Canadian Market

(RTTNews) - Canadian stock market declined on Tuesday, with the Israel-Iran conflict showing no signs of cooling off.

The benchmark S&P/TSX Composite Index today opened lower than previous session but inched its way up to hit the day's high within hours. However, unable to rally up, it declined slowly and settled lower at 26,541.39, down by 27.22 (or 0.10 percent).

As a leading exporter of aluminum and steel to the US, Trump's tariff imposition has hit hard on Canadian industries and auto exports. At the G7 summit that took place in Alberta, hopes ran high of a bilateral deal between the US and Canada.

Yesterday, Canadian PM Mike Carney stated that he and US President Donald Trump are on the verge of completing a new bilateral economic and security agreement in 30 days. This news increased the hopes of easing bilateral trade tension.

On the geopolitical front, during his departure from the summit, Trump disagreed that he wanted a ceasefire between Israel and Iran but hinted that he wanted a "real end". He asserted Iran made a mistake by not signing the nuclear deal with the US and also urged for "full evacuation" of Tehran city.

With indications of the crisis deepening than expected becoming clearer investors moved away to safe-haven investments than riskier assets.

Major sectors that lost in today's trading were Financials (0.23%), Real Estate (0.37%), Industrials (0.75%), Communication Services (0.83%), and Healthcare (2.28%).

Among the individual stocks, Tilray Inc (8.62%), Rogers Communications (1.32%), Air Canada (1.38%), and Primaris REIT (3.68%) were the notable losers.

Energy sector today was the single gainer of the major sectors with 1.72% gain.

Among the individual stocks, Baytex Energy (5.49%), International Petroleum (5.14%), and Canadian Natural Resources (1.19%) were the prominent gainers.