The S&P/TSX Composite Index closed lower on Thursday as weakness in financial stocks outweighed gains in energy and base metals.
The index closed down 36.37 points, or 0.1%, at 36,365.42, with mixed sectors. Energy led gainers, up 1.4%, while Base Metals was up 1.0%. Financial led decliners, down 1.6%.
In commodities, West Texas Intermediate (WTI) and Brent crude rose sharply on Thursday as escalating tensions surrounding the US-Iran conflict heightened concerns over Middle East oil supplies. September WTI crude oil contract settled up $2.00, or 2.3%, at $87.83 per barrel, while October Brent oil was last seen up $1.80, or 2.0%, at $93.42 per barrel.
Meanwhile, December Comex gold futures gained 0.9%, or $41.10, to $4,586.40 per ounce at last look.
In currencies, the US dollar edged lower 0.1% against the Canadian dollar, with USD/CAD at 1.3791 at last look.
In economic data, Canada's Industrial Product Price Index rose 0.6% monthly in July as the US-Iran conflict lifted energy and oil prices, according to Statistics Canada on Thursday. July's IPPI rise was unexpected, as a Bloomberg survey saw a 0.5% monthly consensus drop.
While the Raw Materials Price Index fell 2.2% monthly in July, driven primarily by lower prices for crude energy products as crude shipments through the Strait of Hormuz temporarily increased in early July, added StatsCan.
On the business front, CFIB's long-term Business Barometer index, which tracks businesses' 12-month performance expectations, fell 0.9 points to 57.6 in August versus the previous month, according to the Canadian Federation of Independent Business in its monthly survey. Average planned price increases edged down to 2.7% in August, while average wage growth rose slightly to 2.5%, CFIB said on Thursday.
In real estate, Canadian home prices stabilized in July after falling a cumulative 4.1% over the previous seven months, according to the Teranet-National Bank Composite Index released on Thursday. The stabilization came as resale activity recovered for a fourth consecutive month, said National Bank Capital Markets, which published the survey.
While sales remain below historical averages, broadly balanced market conditions have supported prices, particularly in Vancouver (+0.7%) and Toronto (0.0%), where resale markets have tightened.