Banks and Lifecos fall along with mining names
The S&P/TSX Composite Index was down almost three per cent in the late morning on Tuesday, as global equities sold off and markets reacted more violently to the ongoing conflict in Iran.
At its lowest point on Tuesday morning, the index was down roughly 1,000 points, that is despite high oil prices bolstering energy names on the index.
The hardest hit sectors have been mining stocks. While gold and other precious metals are largely treated as safe havens, investors appear to be liquidating exposure to bullion and mining stocks to cover losses in other positions. Barrick Gold was down around 8.5 per cent on Tuesday morning, while agnico eagle dropped almost 7.5 per cent. Gold itself is down roughly three per cent. Lundin mining, which specializes more in base metals, had also fallen by over five per cent.
The aviation sector was one of the first areas sold off across global markets on Monday and Air Canada's share price has continued to decline, dropping over two per cent on Tuesday morning.
Canada's financial sector is also feeling some pressure with RBC down just under two per cent and Manulife down close to 2.5 per cent.
This sell off is roughly in line with global equity markets, which all appear to be rattled by the war in Iran and shocks to energy prices. The S&P 500 has dropped around 1.6 per cent while the Nasdaq Composite has fallen by around 1.7 per cent. European equities, as measured by the Stoxx Europe 600, were down three per cent, led by bank stocks.
Brent Crude has risen to above $85 (USD) per barrel, its highest point since July of 2024. European gas prices are up over 20 per cent, while Asian gas prices have jumped 65 per cent. Oil and gas producing facilities in gulf states have been targeted by Iranian airstrikes in recent days, leading to suspensions in production.
Energy stocks in Canada were up slightly on Tuesday morning, but not enough to offset losses in other sectors.
