Canada Stocks Fall After Israel Gaza Invasion, Ukraine Jet CrashEric Lam
Canadian stocks fell from a record after a Malaysian passenger jet went down over Ukraine and reports that Israel sent ground forces into the Gaza Strip and
Birchcliff Energy Ltd. and Painted Pony Petroleum Ltd. retreated at least 3.4 percent to pace declines among energy stocks. Canadian Pacific Railway Ltd., the country’s second-largest railroad, rose 2.3 percent as profit beat estimates, powered by a rise in grain and coal shipments. Eldorado Gold Corp. and Agnico Eagle Mines Ltd. increased more than 4 percent as gold posted the biggest gain in four weeks.
The Standard & Poor’s/TSX Composite Index fell 21.86 points, or 0.1 percent, to 15,204.48 at 4 p.m. in Toronto. The benchmark Canadian equity gauge has advanced 12 percent this year, the third-best performer among the world’s developed markets.
The Malaysian plane crashed in the main battleground of Ukraine’s civil war, threatening to further raise tensions just days after the U.S. said the rebels are getting weapons from Russia and tightened sanctions against the country.
Israel sent troops and tanks into the Gaza Strip in an offensive intended to stop the barrage of missiles fired by Hamas and other Palestinian militants. This is Israel’s first significant ground operation in the area since 2009 as the 10-day-old conflict has escalated after an Egyptian peace plan was spurned.
The MSCI All-World Index dropped 0.9 percent while the Chicago Board Options Exchange Volatility Index jumped 32 percent, the most since April 2013.
Canadian Pacific climbed 2.3 percent to C$202.33, a record. Leftovers from a record Canadian wheat crop helped Canadian Pacific post a 32 percent jump in grain revenue in that category. Earnings in the latest period also benefited from a 15 percent increase in coal sales.
Energy stocks declined 0.8 percent as a group, the most in the S&P/TSX, as eight of 10 industries retreated on trading volume about 1 percent above the 30-day average.
Eldorado Gold added 4.2 percent to C$8.15 and Agnico Eagle advanced 4 percent to C$44.84 as the S&P/TSX Gold Index jumped 2.7 percent. Gold for August delivery rose 1.3 percent to settle at $1,316.90 an ounce in New York, the biggest gain in four weeks, as investors sought a safe haven on concern conflicts in Ukraine and the Middle East will escalate.