Baystreet.ca - Canada's main stock index faded Wednesday, coming down from a record high on Wednesday, despite a rise in energy and mining stocks as escalation of the conflict in the Middle East stoked fears of oil supply disruption.
The TSX Composite Index stayed 1.04 points above the breakeven point noon EDT Wednesday to 24,035.03.
The Canadian dollar gained 0.07 cents to 74.17 cents U.S.
Iran on Tuesday carried a ballistic missile strike on Israel and Israeli Prime Minister Benjamin Netanyahu's also vowed to retaliate. Escalation of the conflict caused a wider selloff in global markets on Tuesday.
Investors are cautious due to lack of clarity on how the escalation in the region might evolve, but this lifted prices of oil and safe-haven assets like gold, as well as their related stocks.
In corporate news, Capstone Copper said its 2024 consol copper production is likely to be near the lower end of its forecast range. Capstone shares added 29 cents, or 2.7%, to $11.04.
ON BAYSTREET
The TSX Venture Exchange edged up 2.15 points to 587.24.
Seven of the 12 TSX subgroups moved forward, with materials surging 1.1%, energy rumbling 0.9%, and consumer discretionary better by 0.7%.
The five declining subgroups were weighed most by health-care, fading 0.6%, communications, down 0.5%, and consumer staples, off 0.1%.
ON WALLSTREET
The S&P 500 began to move higher on Wednesday afternoon as the market rally continued stalling amid rising tensions in the Middle East.
The Dow Jones Industrial Average regained 27.85 points to pause for lunch Wednesday to 42,184.82.
The much broader index gained 7.7 points to 5,716.45
The NASDAQ Composite surged 62.11 points to 17,972.47.
Nike (NYSE:NKE) slid more than 5% after the sneaker giant pulled full-year guidance ahead of its CEO change. Tesla (NASDAQ:TSLA) dropped 3% after reporting delivery numbers, though the technology sector was buoyed by a rise in Nvidia (NASDAQ:NVDA)
That action follows a losing session as rising tensions in the Middle East after Iran fired ballistic missiles on Israel dented risk appetite and investor enthusiasm for the new trading period. Investors are readying for more uncertainty as Israel begins a ground operation into Lebanon and tensions escalated with Iran-backed militant group Hezbollah.
ADP (NASDAQ:ADP) data released Wednesday showed better-than-expected private payroll growth in September. That comes ahead of Friday’s closely followed nonfarm payroll report, which could play a major role in the market’s direction and the Federal Reserve’s next rate move as its cutting cycle begins.
Prices for the 10-year Treasury hiked, lowering yields to 3.79% from Tuesday’s 3.74%. Treasury prices and yields move in opposite directions.
Oil prices gained 23 cents at $70.06 U.S. a barrel.
Gold prices let go of $17.80 to $2,672.50 U.S. an ounce