TSX falls as US-Iran negotiations weigh; ARC Resources soars
Canada's main index of stocks edged down on 'Monday' as a lack of progress in U.S. - Iran peace 'talks dampened 'risk appetite'. However, Canadian energy producer ARC Resources saw its shares jump after Britain's Shell announced a $16.4billion deal.
At 10:35 am. The S&P/TSX Composite Index of the Toronto Stock Exchange was down 0.2% to 33,825.82.
Sources from Pakistan's mediator said that despite the failure of face-to -face diplomacy after President Donald Trump cancelled his envoys’ trip and told Iran to call when it wanted a deal, work has continued on bridging gaps between the U.S.
ARC shares reached their highest level since 2014, with a 21.9% increase.
Energy sector led gains with 1.8%, a reflection of higher oil prices, as shipments through the Strait of Hormuz were limited and global oil supplies tight.
"Right away, it's about risk monitoring." After earnings season, the focus will return to a broader macro-picture, including whether rising oil prices begin to impact consumers, said Michael Dehal.
Investors are looking for signs that consumers may be cracking.
The index was dominated by shares of miners. B2Gold dropped 7.3% while Avino Silver and Gold Mines and Kinross Gold declined between 3.3% to 2.7%.
The Bank of Canada will likely keep its rates at 2.25% this Wednesday as economists believe that the oil price spike resulting from the Iran War is only a temporary event with a limited impact on inflation expectations.
According to LSEG data, money market participants have priced in a rate hike by 2026. (Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Shreya Biswas)
(source: Reuters)
