The S&P/TSX Composite Index fell 0.8% to 34,151, its lowest close in three weeks, as escalating tensions in the Middle East prompted a broader risk-off move. US President Donald Trump warned that the US would respond forcefully against Iran if a peace agreement is not reached, increasing fears of further conflict following some of the heaviest clashes in two months.
In monetary policy, the Bank of Canada left its benchmark interest rate unchanged, in line with expectations, citing mixed signals from the domestic economy. Nonetheless, markets are still pricing in a 25 bps rate increase by year-end.
Financials were broadly weaker, with Brookfield down 1.9%. Mining stocks also retreated as gold prices softened: Agnico Eagle fell 4.7%, Barrick lost 5%, and WPM slid 4.4%. Shopify declined 2.1%, mirroring global weakness in AI-linked names.
In contrast, Apotex finished 12.5% above its C$24 IPO price. Energy shares advanced on the back of higher crude prices, with Cenovus gaining 2.7% and Canadian Natural rising 1.9%.
