Downward Trend Continues

(MENAFN- Baystreet)

Canada’s main stock index opened lower on Thursday as an escalation in the Middle East conflict following attacks on energy infrastructure in the region sapped risk appetite, while miners slid tracking metal prices lower.
The TSX floundered another 535.64 points, or 1.7%, to open Thursday trading at 31,777.03
The dollar inched up 0.06 cents to 72.89 cents U.S.
ON BAYSTREET
The TSX Venture Exchange plummeted 50.52 points, or 5.2%, to 925.50.
All but one of the 12 TSX subgroups were lower on the day, as gold faded 6.8%, materials tunneled 6,2%, and health-care shed 2.2%.
Only energy stood out against the negative tide, taking on 1.7%.
ON WALLSTREET
U.S. equities fell on Thursday, while oil prices remained elevated as Wall Street watches for more developments in the Iran war.
The Dow Jones Industrials let go of 416.60 points, or 0.9%, to 45,808.49.
The S&P 500 index sagged 48.35 points to 6,576.35. The much-broader index traded below its 200-day moving average for the first time since May 23.
The NASDAQ dropped 194.74 points to 21,957.68.
The spike in international oil follows Iran striking a key liquefied natural gas (LNG) export facility in Qatar as well as an attack on Iran’s South Pars gas field by Israel. Iran then retaliated by hitting Qatari energy facilities.
With traffic in the key Strait of Hormuz passageway largely at a standstill, the leaders of the United Kingdom, France, Germany, Italy, the Netherlands and Japan expressed in a joint statement Thursday their“readiness to contribute to appropriate efforts to ensure safe passage through the Strait.”
Meanwhile, Micron Technology shares came under pressure, losing 7%. Citi analysts in particular attributed the move to just“some profit taking,” given that a memory supply shortage helped the semiconductor company nearly triple its revenue in its most recent quarter.
The selloff comes after a surprisingly hot producer prices report, and greater inflation expectations from the Federal Reserve, added to fears that the war in Iran could mean the U.S. economy is headed for a stagflation scenario - or a period of lower growth and higher pricing pressures.
Prices for the 10-year Treasury settled, lofting yields to 4.28% from Wednesday’s 4.27%. Treasury prices and yields move in opposite directions.
Oil prices climbed 93 cents to $97.25 U.S. a barrel.
Gold prices collapsed $279.80 to $4,616.40 U.S. an ounce.

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