Canada’s main stock index edged lower on Wednesday as renewed tensions between the US and Iran raised concerns about the likelihood of reaching a deal to end the conflict. Meanwhile, investors assessed the outcome of the Bank of Canada’s latest policy decision. The central bank left its overnight lending rate unchanged at 2.25 per cent, maintaining the Bank Rate at 2.5 per cent and the deposit rate at 2.20 per cent.
US stocks also declined after President Donald Trump indicated that negotiations with Iran were progressing too slowly and warned of possible further action. Tensions in the Middle East intensified late Tuesday when US forces carried out strikes on Iran in response to the reported downing of a US Army Apache helicopter, according to US Central Command. Trump had earlier alleged that Iran was responsible for shooting down the aircraft while it was on patrol over the Strait of Hormuz. Semiconductor stocks faced additional pressure, with shares of Micron Technology (NASDAQ:MU), Advanced Micro Devices (NASDAQ:AMD), and Broadcom (NDAQ:AVGO)—marking their fourth drop in five sessions. Markets did recover somewhat after a softer-than-expected reading of May’s core consumer price index, which excludes food and energy; core CPI rose 0.2 per cent for the month, below the anticipated 0.3 per cent.
| TSX | 34,151.32 | -260.37 |  |
| TSXV | 912.17 | -20.89 | |
| CSE | 174.40 | -3.06 | |
| DJIA | 49,918.78 | -953.33 | |
| NASDAQ | 25,169.50 | -509.32 | |
| S&P 500 | 7,266.99 | -119.66 | |
The Canadian dollar traded for 71.70 cents US compared to 71.67 cents US on Tuesday.
US crude futures traded US$2.14 higher at US$90.34 a barrel, and the Brent contract rose US$1.86 to US$93.31 a barrel.
The price of gold was down US$189.71 to US$4,072.51.
In world markets, the Nikkei was down 1,237.36 points to ¥64,179.27, the Hang Seng was down 157.94 points to HK$24,407.96, the FTSE was up 27.48 points to ₤10,254.81, and the DAX was down 237.75 points to €24,195.31.