FX.co ★ TSX Pressured by Risk Aversion

The S&P/TSX Composite Index experienced a decline of 0.2%, sliding below the 26,530 threshold on Thursday. This shift was primarily driven by escalating tensions between Israel and Iran, coupled with increasing speculation about potential US intervention. President Trump's indecisive position on direct involvement contributed to the geopolitical uncertainty emanating from Washington. Meanwhile, the Federal Reserve's decision to maintain steady interest rates, while also tempering its forecast for rate reductions amidst intensifying trade tensions and risks in the Middle East, highlighted a cautious approach to policy.

Major players in the financial and technology sectors struggled, with Brookfield Asset Management and TD Bank each experiencing a decline of nearly 1%, and Shopify dropping approximately 0.8%, all indicative of a broader defensive market positioning. On the contrary, energy producers saw gains, buoyed by oil prices reaching their highest levels in months amid concerns over potential supply disruptions in the Middle East.