FX.co ★ TSX Closes Sharply Lower

Canada’s S&P/TSX Composite Index sank 2.2% to close at 33,785 on Tuesday, hit by a global flight to safety as the Middle East conflict raised the specter of a major inflationary shock. The benchmark was down nearly 4% at its intraday low before trimming losses, after President Trump’s pledge to provide naval escorts and insurance for tankers transiting the Strait of Hormuz eased immediate concerns over supply. The move helped pull crude off its session highs, but the accompanying surge in bond yields still battered interest-sensitive financials, with RBC and Scotiabank falling 1.7% and 2.8%, respectively. The mining sector was particularly hard-hit, as Agnico Eagle and Wheaton Precious Metals tumbled more than 8% following a sharp pullback in gold prices. Although Shopify defied the broader selloff, rising 2.1% after showcasing its latest AI initiatives, the wider market remains constrained by mounting logistical risks and fears of sustained energy disruptions.