World Tensions Weigh on Markets

Canada's main stock index declined on Friday, in sympathy with its American neighbours, dragged down by losses in technology shares, as Israel's widescale strikes on Iran dampened global risk appetite.

The TSX Composite Index declined 111.4 points to close Friday at 26,504.35. On the week, however, the index grew 75 points, or 0.29%, including Thursday’s all-time high.

The Canadian dollar advanced 0.1 cents to 73.65 cents U.S.

The market was particularly weighed by tech issues, as Lightspeed Commerce doffed 84 cents, or 5.4%, to $14.83, while Docebo slid $1.67, or 4.5%, to $35.63.

Among consumer discretionary stocks, Aritzia handed back $2.35, or 3.5%, to $65.26, while Gildan Activewear weakened $2.74, or 3.4%, to $62.87.

Real-estate also capsized, as Colliers International let go of $3.56, or 2%, to $172.81, while units of Granite REIT parted ways with $1.08, or 1.5%, to $70.49.

Energy led gainers, with Imperial Oil popped $3.87, or 3.6%, to $111.10, while Parex Resources garnered 56 cents, or 3.7%, to $15.59.

Health-care also gained, such as Bausch Health Companies, which advanced 59 cents, or 7.9%, to $8.09.

In materials, Dundee Precious Metals will acquire U.K.'s Adriatic Metals in a cash-and-stock deal valued at $1.25 billion. Shares in Dundee gained 84 cents, or 4.1%, to $21.36.

Nutrien jumped $3.07, or 3.7%, to $85.36.

Economically speaking, manufacturing sales decreased 2.8% in April, the third consecutive monthly decline, driven largely on lower sales of petroleum and coal products, motor vehicles, and primary metals.

Excluding the petroleum and coal product subsector, total manufacturing sales were down 1.8%.

What’s more, wholesale sales fell 2.3% to $84.0 billion in April.

Finally, new motor vehicle sales totaled 195,659 in April, increasing 11.3% from one year earlier. Gains were widespread, with all provinces observing a higher number of units sold. April represented the month with the highest sales on record in dollar terms, at nearly $10.8 billion.

ON BAYSTREET

The TSX Venture Exchange dipped 0.66 points Friday to 721.13. On the week, the index was behind 0.47 points, or 0.07%.

Eight of the 12 TSX subgroups were lower, weighed most by information technology, sliding 2.4%, while consumer discretionary stocks lost 1.6%, and real-estate fell 1.1%.

The four gainers were led by energy, ahead 2.5%, while gold gathered 2.1%, and materials prospered 1.4%.

ON WALLSTREET

Stocks tumbled Friday after Israel launched a wave of airstrikes on Iran, pushing energy prices higher and adding another complication at a time of heightened geopolitical tensions.

The Dow Jones Industrials tumbled 769.83 points, or 1.8%, to 42,197.79

The S&P 500 index dipped 68.29 points, or 1.1%, to 5,976.97

The NASDAQ Composite was down 255.56 points, or 1.3%, to 19,406.83.

Stocks were on track for gains on the week before Friday’s selloff. The S&P is down 0.5% this week, while the 30-stock Dow dropped 1.5%, and NASDAQ lost 0.8%.

Nvidia and other stocks that have led the market’s comeback from the April lows dropped as investors shed risk. Oil and defense stocks were higher. Exxon added 2%, while Lockheed Martin and RTX each jumped about 3%.

The market drop happened as Israel’s defense minister Israel Katz declared a special state of emergency following an Israeli attack on Iran. Two U.S. officials were quoted as saying there was no U.S. involvement or assistance,

Stocks fell dramatically Friday afternoon after Israel Defense Forces said that Iran launched missiles toward Israel late Friday local time, in retaliation for Israel’s series of airstrikes against Iran.

Iranian state television said Friday afternoon that Iran will not participate in the sixth round of nuclear negotiations with the U.S. planned for this weekend.

President Donald Trump, in a Friday morning post on his social media site Truth Social, warned Iran to come to the negotiating table.

“There has already been great death and destruction, but there is still time to make this slaughter, with the next already planned attacks being even more brutal, come to an end. Iran must make a deal, before there is nothing left, and save what was once known as the Iranian Empire,” Trump wrote. “No more death, no more destruction, JUST DO IT, BEFORE IT IS TOO LATE.”

Separately, a closely watched University of Michigan survey released Friday indicated an uptick in consumer sentiment last month. The university’s Survey of Consumers rose to 60.5 in June, well ahead of the Dow Jones estimate for 54 and a 15.9% increase from a month ago.

Prices for the 10-year Treasury sagged, raising yields to 4.41% from Thursday’s 4.36%. Treasury prices and yields move in opposite directions.

Oil prices increased $5.19 to $73.23 U.S. a barrel.

Gold prices vaulted $52.10 to $3,454.50 U.S. an ounce.