(RTTNews) - The Canadian market recovered after a weak start Thursday morning, but after a few minutes in positive territory, slipped into the red as worries about escalating conflict in the Middle East rendered the mood cautious.
Energy stocks moved higher, riding on oil's upmove following reports about drone strikes on oil tankers in the Persian Gulf overnight, but the commodity's surge has raised concerns about inflation and possibility of interest rate hikes by several central banks across the globe.
Utilities stocks are the other gainers on Bay Street. Materials, healthcare and financials stocks are weak, while shares from other sectors are turning in a mixed performance.
The benchmark S&P/TSX Composite Index was down 181.09 points or 0.55% at 32,938.79 about a quarter past noon. The index had dropped to a low of 32,840.01 earlier in the session.
The Materials Capped Index is down 1.37%. Labrador Iron Ore Royalty is down more than 6%. Perpetua Resources, Ngex Minerals, Eldorado Gold, Taseko Mines, Lundin Gold, Discovery Silver Corp and Lithium Americas Corp are down 3%-4%.
In the financials sector, Goeasy is tanking more than 9%. EQB, Brookfield Corporation, Brookfield Asset Management, Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce and Onex Corporation are down 1%-3%.
Healthcare stocks Bausch Health Companies and Chartwell Retirement Residences are down 4.7% and 2.4%, respectively. Sienna Senior Living is down by about 1%.
Energy stocks Vermilion Energy, CDN Natural Resources, Suncor Energy, Arc Resources, Parex Resources and Whitecap Resources are gaining 1.3%-3%.
In economic news, data from Statistics Canada showed, Canada's trade deficit widened to C$3.6 billion in January 2026 from a C$1.3 billion deficit in December and way more than the expected C$0.9 deficit. Exports fell 4.7% m/m to C$62.48 billion, while imports decreased 1.1% to C$66.13 billion.
Building permits in Canada rose by 4.8% month-over-month to C$13.3 billion in January 2026, following a downwardly revised 6.1% advance in the prior month, a separate data from Statistics Canada showed.
Meanwhile, Canada's wholesale trade fell by 1% month-on-month to C$85.2 billion in January 2026, more than the initially reported 0.6% decrease, following a revised 1.8% gain in December.
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