Canada’s main stock index fell lower on Tuesday as investors grow worried that tensions in the Middle East will not be easing any time soon, while also awaiting the Bank of Canada’s interest rate announcement scheduled for Wednesday. Most economists surveyed by Reuters expect the central bank to keep its key rate unchanged at 2.25 per cent for a fifth consecutive meeting. At the same time, Prime Minister Mark Carney is working to expand Canada’s trade relationships beyond the United States, although the country’s attractiveness to global partners continues to rely heavily on tariff-free access to the US market under the USMCA agreement.
US markets also had it rough following Friday’s sharp decline, while oil prices retreated amid optimism that a US–Iran agreement could be close. Although Iran and Israel have paused direct attacks against each other, uncertainty persists as negotiations between Washington and Tehran have yet to produce a lasting resolution, and the Strait of Hormuz remains shut. On Monday, Iran announced it was halting strikes on Israel but warned it would resume military action if Israeli operations in Lebanon continue, according to its foreign ministry. Shortly afterward, Israeli Prime Minister Benjamin Netanyahu stated that the conflict involving Iran and Hezbollah is “not yet over.”
| TSX | 34,411.69 | -67.05 |  |
| TSXV | 933.06 | -14.85 | |
| CSE | 177.46 | -5.69 | |
| DJIA | 50,872.11 | +86.10 |  |
| NASDAQ | 25,678.82 | -250.84 | |
| S&P 500 | 7,386.65 | -19.08 | |
The Canadian dollar held steady at 71.67 cents US like on Monday.
US crude futures traded US$2.82 lower at US$88.48 a barrel, and the Brent contract lost US$2.52 to US$91.73 a barrel.
The price of gold was down US$79.48 to US$4,260.76
In world markets, the Nikkei was up 1,392.03 points to ¥65,416.63, the Hang Seng was down 91.16 points to HK$24,565.90, the FTSE was down 145.87 points to ₤10,227.33, and the DAX was down 183.16 points to €24,433.06.
