Canadian Market Slides On Geopolitical Risk And Producer Price Surge

(RTTNews) - After a weak start and a subsequent smart rebound, the Canadian stock market retreated on Thursday, weighed down by concerns over Middle East tensions, and data showing an acceleration in Canadian producer prices.

Shares from financial, communications, consumer staples and healthcare sectors were among the notable losers. Materials and energy stocks moved higher.

Higher oil prices and rising U.S.-Iran tensions raised concerns about global economic growth.

In a post on Truth Social, Trump announced he is launching "economic warfare" against Iran, calling it the "most crushing economic operation ever taken against any country."

Trump also warned of "tremendous economic consequences" for any country that "allows its financial institutions, businesses, airports, or government entities to provide any type of lifeline to Iran."

Iran's Foreign Minister Abbas Araghchi described the so-called "Economic D-Day" as a "diversion from America's own crisis: unprecedented debt & surging interest costs."

"Doubling down on failed policies will only bring further defeat—and enmity of Iranians," Araghchi said in a post on X. "US economic terrorism threatens global economy and sovereignty worldwide."

The benchmark S&P/TSX Composite Index was down 104.74 points or 0.29% at 36,297.05 a little while ago.

The Financials Capped Index shed 1.7%. EQB fell 3.7%. Power Corporation of Canada, Manulife Financial, Great-West Lifeco, Igm Financial, National Bank of Canada, IA Financial Corporation, Bank of Montreal, Canadian Imperial Bank of Commerce, Sun Life Financial, Bank of Nova Scotia, Royal Bank of Canada and Toronto-Dominion Bank lost 1%-3%.

Consumer staples stocks Alimentation Couche-Tard, Loblaw, Empire Company and Weston George lost 1%-2%.

Healthcare stock Curaleaf Holdings shed 4.4%. Extendicare fell 1.7%, while Bausch Health Companies drifted down 0.4%.

Communications stocks Quebecor, Cogeco Communications and Rogers Communications lost 3.7%, 2.4% and 1.5%, respectively.

Data from Statistics Canada showed Canada's Industrial Product Price Index rose 0.6% month-over-month in July, rebounding from a 1.4% decline in June and exceeding forecasts for a 0.4% drop. Producer Prices in Canada increased 12.4% in June of 2026 over the same month in the previous year.

A separate data from Statistics Canada said raw materials prices in Canada fell 2.2% month-over-month in July, following a 6.9% decline in June and exceeding forecasts for a 1.8% drop. Year over year, the RMPI increased 18.1% in July, slowing from a 21% gain in June.

Canada's new housing prices fell 0.1% month-on-month in July, matching the pace of decline in June and missing market expectations for a flat reading.