Canada's main stock index sank the most in nearly two months on Friday, including banking and resource sectors, as investors assessed market gains and the potential of a larger Middle East conflict.
S&P/TSX composite index (.GSPTSE), down 210.12 points, or 0.95%, to 21,899.99, its worst drop since Feb. 13. After eight weeks of gains, it fell 1.64% this week.
"Geopolitics has some negative connotations to price action, but it's also a measure of deep overbought conditions in broad indices," said CIBC Capital Markets head market technician Sid Mokhtari.
According to the March 19-20 Federal Reserve minutes, officials fretted that inflation momentum had halted, necessitating a lengthier period of tight monetary policy.
"The minutes indicate that the committee would lower rates if the economy went as planned. However, inflation is expected "Wong said. As interest rates rise, bullion's appeal as an inflation hedge fades. Bullion prices peaked at $2,365.09 on Tuesday.
"The longer-term bull outlook is unchanged. Trends remain strong." After a senior official at Iran's Damascus embassy was killed last week, Israel cautiously expected a strike by Iran or its agents.
"This week's data showed that inflation progress may be stalling," said Edward Jones Investments senior investment strategist Angelo Kourkafas. "Interest rates might need to stay high for longer."
After major U.S. banks announced mixed results, all 10 main sectors fell on Friday, including heavily-weighted financials (.SPTTFS) by 0.91%. Gold fell from a record high, lowering the materials group (.GSPTTMT), which comprises metal miners and fertilizer firms, by 1.03%.
Follow for more updates