Canada Stocks: TSX falls to one-month low on escalating Middle East war
12/03/2026 20:29
TSX ends down 0.8% at 32,840.60 Posts lowest closing level since February 12 Financials fall 1.4%; industrials end 2.1% lower Energy adds 2.1% as oil settles 9.7% higher Updates at market close By Fergal Smith March 12 (Reuters) - Canada's main stock index fell to a one-month low on Thursday as the Middle East conflict weighed on investor sentiment, with declines for financial and industrial shares offsetting gains for energy after oil prices jumped. The S&P/TSX composite index .GSPTSE ended down 279.23 points, or 0.8%, at 32,840.60, marking its lowest closing level since February 12. U.S. stocks posted steeper declines as Iranian strikes on two oil tankers sent crude prices surging toward $100 per barrel, exacerbating already heightened inflation fears. "Sentiment is so weak right now," said Michael Dehal, a senior portfolio manager at Dehal Investment Partners at Raymond James. "The majority of focus is on the Middle East conflict. You are seeing oil prices catching a bid and everything else is selling off." Heavily weighted financials .SPTTFS dropped 1.4%, including declines for major banks and for non-prime consumer lender goeasy Ltd GSY.TO. Its shares tumbled 13.9%, adding to sharp declines over the previous two sessions after the company flagged a charge-off of about C$178 million ($130.82 million) and write-downs tied to its LendCare unit. "That loan market ... it's causing some concerns, especially in Canada where you do have a fragile economy - higher job losses and unemployment starting to go up," Dehal said. Canada's employment report for February, due on Friday, is expected to show the unemployment rate increasing to 6.6% from 6.5% in January. Industrials lost 2.1%, technology was down 1.5% and the materials group .GSPTTMT, which includes metal-mining shares, ended 1.1% lower. The price of gold XAU= was down 1.7%, pressured by a stronger U.S. dollar .DXY and diminishing hopes for a reduction in borrowing costs as the war stoked inflation concerns. Still, the TSX has advanced 3.6% since the beginning of the year after adding 28.25% in 2025. Investors have turned to the resource-rich market for shelter from the turmoil around artificial intelligence — and on hopes the new technology will ultimately boost productivity for some of its biggest names. U.S. crude oil futures CLc1 settled 9.7% higher at $95.73 a barrel on Thursday, while energy .SPTTEN added 2.1%. (Reporting by Fergal Smith in Toronto and Rashika Singh in Bengaluru; Editing by Diti Pujara and Alistair Bell) ((fergal.smith@thomsonreuters.com; +1 647 480 7446))