TSX Down More Than 1% As Geopolitical Tensions Weigh

(RTTNews) - After a slightly weak start and a subsequent modest upmove, the Canadian market slipped into negative territory on Monday as concerns about escalating tensions in the Middle East and prospects of an interest rate hike from the Federal Reserve next month rendered the mood cautious.

The benchmark S&P/TSX Composite Index, which advanced to 36,559.85 in early trades, was down 372.74 points or 1.02% at 36,181.32 a little while ago.

During his speech at Jackson Hole Economic Symposium on Friday, Fed Chair Kevin Warsh noted that inflation remains elevated and there might be a need to tighten policy if inflation does not show signs of easing.

In Middle East news, American forces targeted two rocket launches on Iran's Larak Island, killing and wounding several Iranian fighters and civilians. Washington "took limited, precise action against IRGC minelaying forces posing an imminent threat in the Strait of Hormuz," the U.S. Central Command said.

Iran's Islamic Revolutionary Guard Corps (IRGC) said it subsequently launched attacks on U.S. military bases in Jordan.

Investors also looked ahead to the Canadian central bank's monetary policy announcement, due on Wednesday.

Energy stocks found some support thanks to sharply higher crude oil prices. Materials, technology, real estate, industrials and financials stocks reeled under pressure.

Bombardier shed more than 5%. Lundin Mining, Shopify, Ero Copper, Dundee Precious Metals, First Quantum Minerals, B2Gold Corp., NovaGold Resources, Equinox Gold, Real Matters, Wheaton Precious Metals, Cameco, Barrick Gold, Pan American Silver, Kinross, Eldorado Gold, Endeavour Mining and Exchange Income lost 2%-4%.

Among the gainers, New Flyer Industries, Parex Resources, Knight Therapeutics, Vermilion Energy, Methanex, Precision Drilling, Baytex Energy, Nutrien, Pason Systems, AltaGas, Enerflex, Aurora Cannabis, Cascades, Transcontinental, Mullen, EQB and Canadian Natural Resources gained 1%-3%.