(RTTNews) - Canadian stocks slumped on Tuesday, extending the two previous sessions of losses following today's fresh wave of U.S. strikes against Iran. In addition, traders continued to assess the long-term effects of the mutual tariffs imposed by Canada and the U.S. on Canadian economy.
After opening lower than yesterday's close, today the benchmark S&P/TSX Composite Index traded firmly negative throughout the session before settling at 35,825.73, down by 444.75 points (or 1.23%).
Only two of the 11 sectors posted gains today, with the energy sector leading the pack.
On the geopolitical front, today U.S. President Donald Trump announced through Truth Social that the U.S. commenced large and powerful strikes on Iran in retaliation for its recent strikes against U.S. bases in Jordan.
Axios reported that today's U.S. attacks hit targets along the southern coast of Iran in the cities of Bandar Abbas, Jask, Chabahar, Konarak, Minab, Sirik, and the island of Qeshm. Iran's military said that the U.S. will regret for its actions.
While Trump claimed that the Strait of Hormuz is fully under U.S. control, in a video message, Iran's Parliament Speaker Mohammad Bagher Ghalibaf warned that the strait is in the full control of Iranian forces.
The possibility of being attacked compelled seafarers to avoid any voyage through the region. Shipping traffic across the strait has largely reduced, sending crude oil prices to trade above the $90-per-barrel levels.
Prior to today's attacks on Iran, Iran's President Masoud Pezeshkian stated that the nation is ready to return to the commitments of the June 17 Memorandum of Understanding provided the U.S. does the same.
Dashing the expectations that the brief exchange of attacks over the weekend would not grow larger, today Trump ordered the new wave of attacks. With this, concerns of an expansive conflict for a protracted period have increased.
On the trade front, Canada and the U.S. are nowhere near in resolving their tariff conflict.
Last year, among the nations targeted by U.S. President Donald Trump for reciprocal tariffs, Canada was hit with high levies.
Last week, an additional 50% levy on Canadian exports to the U.S., amounting roughly $20 billion worth of trade came into effect.
Attempts by Canadian negotiators to strike a mutually agreeable deal with the U.S. collapsed on August 21.
Announcing a dollar-for-dollar retaliation, Prime Minister Mark Carney's administration hit back at the U.S. with counter-tariffs.
As the tariff tension rages, Carney met several business leaders across different sectors to discuss Canada's future relations with the U.S.
Notable attendees included leaders from RBC, Enbridge, Bell Canada, and Bombardier.
After calling Canada the worst nation to deal with in trade, last week, Trump signed an executive order renaming "Lake Ontario" as "Lake America."
Trump also urged tech major Apple to effect the change in its maps while Google implemented it already.
Trump also posted through Truth Social that Canada kept ripping off the U.S. for decades in trade which he claimed will stop from now on.
Investors expect the Bank of Canada to leave its benchmark interest rate on hold at 2.25% on Wednesday.
The S&P Global Canada Manufacturing Purchasing Managers' Index edged lower to 53.00 in August from 53.50 in July though remaining above the "50.00 no-change threshold" for the fifth consecutive month.
Major sectors that gained in today's trading were Energy (3.13%) and Consumer Staples (1.12%).
Among the individual stocks, Athabasca Oil Corp (3.95%), Parex Resources Inc (3.93%), CDN Natural Res (3.71%), Tamarack Valley Energy Ltd (3.54%), Cenovus Energy Inc (3.53%), and Loblaw CO (2.41%) were the prominent gainers.
Major sectors that lost in today's trading were Materials (3.63%), IT (2.99%), Industrials (2.48%), Consumer Discretionary (1.07%), Real Estate (0.84%), and Financials (0.72%).
Among the individual stocks, Montage Gold Corp (8.48%), Skeena Resources Limited (6.86%), Novagold Res Inc (6.54%), Abrasilver Resource Corp (6.49%), Trekor Metals Limited (6.45%), and Tecsys Inc (5.52%) were the notable losers.