Canada’s S&P/TSX Composite Index tumbled more than 2.5% to below 33,650 on Tuesday, as a global risk-off move intensified amid fears that the escalating conflict in the Middle East could unleash a major inflationary shock on the world economy. The death of Iran’s Supreme Leader and attacks on key energy infrastructure in the Persian Gulf pushed Brent crude up more than 7%, but the accompanying surge in bond yields weighed heavily on interest-sensitive sectors.
Shares of Canada’s largest banks, including RBC and TD Bank, fell nearly 2%, as concerns over rising credit costs overshadowed the uplift to energy producers such as Suncor and Enbridge. The selloff was particularly pronounced in the mining space: Agnico Eagle and Wheaton Precious Metals each lost more than 6%, mirroring a pullback in bullion prices. Tech bellwether Shopify also dropped more than 3%, underscoring the broader pressure on high-growth names.
