TSX Takes Hit As Iran War Escalates

(MENAFN- Baystreet)

Futures linked to Canada’s main stock exchange inched lower on Thursday as an escalation in the Iran war following attacks on energy infrastructure across the Middle East jolted investors, while a slump in metal prices added further pressure.
The TSX suffered its biggest one-day loss in months, taking off 616.42 points, or 1.9% to close Wednesday trading at 32,312.67
June futures slid 0.6% Thursday.
The Canadian dollar began the day down 0.03 cents to 72.80 cents U.S.
While the spike in oil prices has lifted Canadian energy stocks up more than 34% this year, outperforming peers, it has put global central banks in a bind over their monetary policy outlook.
The U.S., Canadian and Japanese central banks, among others, struck hawkish tones on Wednesday, with the Federal Reserve projecting higher inflation and a single reduction in borrowing costs this year.
ON BAYSTREET
The TSX Venture Exchange plummeted 35.04 points, or 3.5%, Wednesday to 976.02.
ON WALLSTREET
U.S. stock futures fell slightly Thursday after the Dow Jones Industrial Average dropped to a fresh 2026 low in the previous session, as inflation fears took hold on Wall Street.
Futures for the 30-stock index slid 101 points, or 0.2%, to 46,434.
Futures for the S&P 500 index dipped 14 points, or 0.2%, to 6,663.
Futures for the NASDAQ dumped 82 points, or 0.3%. to 24,569.25.
Micron Technology shares lost 6% in premarket trading. A memory supply shortage helped the semiconductor company nearly triple its revenue in its most recent quarter.
Wall Street is coming off a dismal trading session. On Wednesday, the 30-stock Dow tumbled some 768 points, or 1.6%, to a new closing low for the year.
The benchmark, which also touched an intraday low for 2026, even closed below its 200-day moving average, a technical level suggesting the long-term trend for the index is now negative.
The selloff comes after a surprisingly hot producer prices report, and greater inflation expectations from the Federal Reserve, added to fears that the war in Iran could mean the U.S. economy is headed for a stagflation scenario - or a period of lower growth and higher pricing pressures.
In Japan, the Nikkei 225 pitched lower 3.4% Thursday, while in Hong Kong, the Hang Seng ailed 2%.
Oil prices gathered $1.24 to $97.56 U.S. a barrel.
Gold prices withered $206.10 to $4,690.10 U.S an ounce.

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