The S&P/TSX Composite Index declined more than 0.5% on Tuesday, slipping below 36,500 as global bond yields moved higher. Renewed hostilities in the Middle East drove oil prices up, prompting markets to reassess the outlook for further interest rate hikes by central banks. The Bank of Canada is widely expected to keep its policy rate unchanged on Wednesday, while Canada’s 10-year government bond yield climbed to its highest level in nearly two weeks.
Financial stocks were broadly weaker, and the rise in yields also pressured gold prices, weighing on mining shares. Agnico Eagle dropped nearly 3%, while Barrick, Wheaton Precious Metals (WPM), and Franco-Nevada each fell about 2%. Technology names extended their declines, with Shopify losing more than 3.5%.
In contrast, energy stocks advanced on the back of stronger crude prices. Canadian Natural Resources, Suncor, and Cenovus each gained roughly 2%.
