Canada Stocks: TSX down as Mideast tensions fuel inflation jitters

Shopify

06/03/2026 16:33

TSX down 1.23%

Badger Infrastructure down 11.7%

Algonquin Power down 11.5%

Bitfarms falls 4.8%

Updates throughout, adds details, and analyst comments

By Utkarsh    Hathi

March 6 (Reuters) -
Canada's main stock index fell on Friday, with nearly every sector under pressure, while a surge in oil prices driven by Middle East tensions reignited inflation concerns.

The S&P/TSX composite index .GSPTSE was down 1.1% at 33,196.45 points as of 11:30 a.m. ET. The benchmark was on track to snap a four-week winning streak, having fallen 3.2% for the week so far.

Investors are worried that the Middle East conflict, which entered its seventh day, could prolong after U.S. President Donald Trump demanded Iran's "unconditional surrender" on Friday.

Qatar's energy minister warned that the war could force Gulf countries to halt energy exports within weeks and drive oil to $150 a barrel, the Financial Times reported.

The energy sector .SPTTEN was the only gainer on the TSX, up 0.5%, poised for its longest weekly winning streak since August 2023, as Brent crude futures LCOc1 crossed the $90-mark.

Meanwhile, the U.S. economy unexpectedly lost jobs in February.

"If we get more job losses in the next couple of months then obviously the Fed would have to act. But if the prices start going higher with the war dragging, that can complicate the picture," said Michael Dehal, senior portfolio manager at Dehal Investment Partners, Raymond James.

Back home, industrials .GSPTTIN led sectoral losses on the TSX, with a 2.3% dip. Excavating firm Badger Infrastructure BDGI.TO slumped 11.7% after quarterly results, logging the biggest percentage decline on the index.

Heavyweight financials .SPTTFS shed 1.9%.

Gold miners .SPTTGD fell 0.3% and base metal miners in the materials sector .GSPTTMT fell 0.6%. Both subindexes were on track to log weekly declines of more than 10%, if losses hold.

Tech stocks .SPTTK fell 0.8% after three consecutive sessions of advances, though they looked set to gain for the week.

Among individual movers, shares of Algonquin Power AQN.TO plunged 11.5%. The energy firm forecast fiscal 2027 profit below analysts' estimates, sending the broader utilities sector .GSPTTUT down 1.2%.

 Blockchain farm operator Bitfarms BITF.TO dropped 4.8% as bitcoin BTC= prices dipped more than 3%, while e-commerce firm Shopify SHOP.TO fell 3.7%.

 (Reporting by Utkarsh Tushar Hathi; Editing by Diti Pujara)

 ((utkarshtushar.hathi@thomsonreuters.com))