Canada’s main stock index closed down along with U.S. markets Friday as investors turned cautious following Israeli attacks on Iranian nuclear and military targets.
The attacks, which prompted Iran to fire missiles at Israel in retaliation, raised fears the conflict could escalate further and led to a spike in the price of oil.
“It’s clearly a risk-off situation, and a spot where people that maybe want to take a little bit of risk off the table have the opportunity to do so,” said Dustin Reid, chief fixed income strategist at Mackenzie Investments.
The price of oil, already rising this week, spiked over fears of supply and trade disruptions, with the August crude oil contract up US$4.65 at US$71.29 per barrel.
Higher oil prices helped soften the effects of the pullback on the S&P/TSX composite index, which closed down 111.40 points at 26,504.35 but was less affected than U.S. markets, noted Reid.
“You see materials and energy,…
