Canada’s S&P/TSX Composite Index fell about 0.6% to below the 33,100 level on Wednesday, as investors digested a mix of persistent US inflation data and escalating maritime tensions in the Middle East. February CPI showed inflation at 2.4%, pointing to a potentially slower trajectory for interest rate cuts. Risk sentiment was further dampened by reports of projectile strikes on cargo vessels near the Strait of Hormuz, which helped push West Texas Intermediate crude toward $87 a barrel despite discussions around a large strategic petroleum reserve release.
Concerns over domestic financial stability also intensified after shares of goeasy slumped roughly 20% on the back of substantial loan book charges. By contrast, the technology sector found some support from stronger-than-expected quarterly results at Oracle. Miners were among the worst performers, with Agnico Eagle, Barrick Gold, and Wheaton Precious sliding between 3.2% and 4.2%. Rising US Treasury yields and a firmer US dollar index added further pressure to Canadian equities.
