28.05.202614:24:45UTC+00TSX Slips on Renewed Middle East Tensions

The S&P/TSX Composite Index inched lower on Thursday, slipping below the 34,500 mark as renewed Middle East tensions dampened optimism over a potential peace agreement and investors assessed a fresh batch of bank earnings. Iran struck a US air base following a US attack on what Washington described as an Iranian drone facility near the Strait of Hormuz. Crude prices rebounded, stoking worries about stagflation. Mining stocks dragged on the benchmark as gold fell to its lowest level in nearly two months, with Agnico Eagle, Barrick, and Wheaton Precious Metals (WPM) each losing close to 2%. Financials also retreated, with CIBC down 2.7% and BMO off 1.2%. RBC was little changed, despite reporting higher quarterly profit driven by stronger trading revenue, while TD Bank also traded flat after posting better-than-expected adjusted earnings. Government bond yields climbed after US PCE inflation accelerated in April to its highest level in three years, bolstering expectations for a more hawkish policy stance.