Canada Stocks: TSX hits one-month low as Mideast conflict saps risk appetite

Methanex

13/03/2026 20:44

TSX  ends down 0.9% at 32,541.93

For the week, the TSX loses 1.6%

Canadian economy sheds 83,900 jobs in February

Materials group falls 4.2% as gold prices fall

Updates at close

By Fergal Smith

March 13 (Reuters) - Canada's main stock index fell to a one-month low on Friday as investors weighed gloomy domestic jobs data and braced for longer-lasting disruptions to oil supply due to the Middle East war than previously hoped.

The S&P/TSX composite index .GSPTSE ended down 298.67 points, or 0.9%, at 32,541.93, marking its lowest closing level since February 12. For the week, the index lost 1.6%, while it has pulled back 5.8% from its March 2 record closing high.

"Amid the big swings in oil prices this week, and the related moves in other markets, the key theme was a grinding acceptance that the conflict with Iran will not end soon," Douglas Porter, chief economist at BMO Capital Markets, said in a note.

"It’s quite evident that Iran will have a big say through its control of the Strait of Hormuz. And its tough stance there suggests the very real possibility that oil prices will stay elevated and volatile for some time yet."

Investors have worried that higher oil prices could raise inflation pressures, lead to tighter than previously expected monetary policy and depress the economy.

"Canada was pummelled with tough economic indicators this week, amplifying the point of a stumbling start in 2026," Porter said.

Domestic data showed that the economy unexpectedly shed 83,900 jobs in February, while the unemployment rate rose to 6.7% from 6.5%.

The materials group .GSPTTMT, which includes mining shares, fell 4.2% as a stronger U.S. dollar .DXY weighed on metal prices. Gold XAU= was down 1.3%.

Shares of methanol producer Methanex Corp MX.TO ended 10.2% lower after touching a near-seven-year high on Thursday.

Technology lost 1.4% but most other major sectors ended higher, including consumer staples .GSPTTCS, which gained 1.6%.

Energy .SPTTEN was up 0.1% as U.S. crude oil futures CLc1 settled 3.1% higher at $98.71 a barrel.

 (Reporting by Fergal Smith and Rashika Singh; Editing by Diti Pujara and Diane Craft)

 ((fergal.smith@thomsonreuters.com; +1 647 480 7446))