The Toronto Stock Exchange slumped on Tuesday on some profit taking after a recent strong run gains and amid market nerves ahead of Wednesday's scheduled expiration of a U.S.-Iran ceasefire agreement.
The S&P/TSX Composite Index closed down 551.73 points, or 1.6%, to 33,808.30, with all sectors bar one lower as Energy, rose 1.9% on elevated oil prices. Base Metals was the biggest loser, down 3.8%, not helped by a deflated gold price. The TSX was up in 12 of the prior 14 sessions leading into today.
Investor focus appears to be on the current U.S.-Iran ceasefire, which went into effect on April 8, but is set to expire "Wednesday evening Washington time," according to U.S. President Donald Trump. The president told Bloomberg in an interview he is "highly unlikely" to extend the ceasefire if no deal is reached with Iran.
U.S. Vice President JD Vance was supposed to depart earlier today for the next round of negotiations in Pakistan but he has, reportedly, since gone to the White House for policy meetings. Details around his planned departure are now unclear. The Wall Street Journal reported Iran is refusing to attend negotiations until the U.S. Navy lifts a blockade of the country's ports.
Of commodities today, West Texas Intermediate closed higher Tuesday amid an uncertain outlook for peace talks between Iran and the United States. WTI crude oil for May delivery closed up US$2.52 to settle at US$92.13 per barrel, while June Brent oil was up US$3.11 to US$98.59.
Gold prices were down a second day by midafternoon Tuesday as the dollar rose after U.S. retail sales rose above expectations last month, while talks between the United States and Iran could see an end to the Middle East war that has sent the price of oil and other commodities higher. Gold for May delivery was down US$105.50 to US$4,723.30 per ounce.