TSX Falls 0.97% as Middle East Tensions, Rate Fears Weigh on Canadian Stocks

Canadian stocks closed sharply lower Thursday, with the benchmark S&P/TSX Composite Index shedding 351.54 points, or 0.97%, to settle at 35,973.45, as renewed Middle East war fears and inflation-driven rate concerns rattled investors. The decline followed a New York Times report that the U.S. and Israel are preparing strikes on Iranian nuclear, energy and military infrastructure after the U.S. midterm elections, though President Donald Trump has not approved the operation and diplomatic efforts continue. Energy-driven inflation worries dominated as a potential war could disrupt oil trade indefinitely. Despite the drop, 8 of 11 sectors gained, led by Communication Services (3.93%), Real Estate (2.84%) and Industrials (2.33%). Information Technology fell 1.63%, Energy 1.72% and Materials 5.62%. Celestica Inc. lost 12.04%, BlackBerry Limited 9.08% and Shopify Inc. 3.48%. Statistics Canada reported producer prices rose 2.00% month-on-month in September and 14.50% year-on-year. The Bank of Canada announces its rate decision October 28, with some analysts pricing roughly 80% odds of a quarter-point hike.