05.03.202614:47:17UTC+00TSX Drops to 2-Week Low

Canada’s S&P/TSX Composite Index fell about 1% on Thursday, slipping below 33,600 to a two-week low, as rising geopolitical tensions in the Middle East and signs of stubborn inflation weakened expectations for interest rate cuts. Stronger-than-anticipated wage growth and higher manufacturing costs pushed government bond yields higher in line with U.S. Treasuries, weighing on financial and mining stocks.

Shares of Royal Bank of Canada and TD Bank declined, while major gold miners such as Agnico Eagle and Barrick Gold dropped more than 3.5% as investors unwound earlier safe-haven trades. In contrast, energy producers provided some support to the market: Canadian Natural Resources and Cenovus Energy each gained more than 1%, buoyed by global supply concerns that kept crude prices near recent highs. Technology names also outperformed, with Shopify and Constellation Software climbing more than 2%.

In other developments, Canada signed new critical minerals agreements with Australia.