FX.co ★ Canadian Stocks Slide on Inflation Fears

The S&P/TSX Composite Index declined 1.1% to close at 35,506 on Thursday, as rising oil prices and higher bond yields intensified inflation concerns. Crude prices surged amid heightened fears of prolonged energy supply disruptions, following the largest wave of attacks on shipping in the Strait of Hormuz by Washington and Tehran on Wednesday. Global bond yields climbed on worries that inflation will remain elevated, adding further pressure on equity markets.

Weakness in precious and base metals also weighed on the index. Gold’s pullback hit miners, with Agnico Eagle down 2.8%, Barrick off 2.3%, and WPM sliding 3.7%. Copper prices retreated as well, pushing Hudbay down 7.3% and Capstone 9.3%. Enbridge fell 3.7% after announcing the acquisition of Tallgrass Energy’s crude oil business, including a majority stake in the Pony Express Pipeline and related assets.