Financial Report

Market Update

The TSX declined 1.87% to 32,312.67 points on March 18, marking its worst day in two weeks. The decline was largely driven by the Bank of Canada's decision to hold interest rates at 2.25%, despite the central bank's readiness to raise rates if required to prevent persistent inflation.

Interest Rate Decisions

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The Bank of Canada and the U.S. Federal Reserve made separate interest rate decisions on March 18. The Federal Reserve kept its interest rate unchanged, while warning of higher inflation. The BoC's decision to hold rates steady was in line with market expectations.

Sector Performance

The materials index fell 5.6% as precious metal prices dropped, touching its lowest level since January 8. Spot gold and silver slid more than 3% to a one-month low after the Fed's decision. However, energy shares inched up 0.8% after Iranian media reported facilities in South Pars and Asaluyeh had come under attack, lifting oil prices.

Notable Movers

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• Boyd Group slumped 13.2% after missing earnings estimates for the fourth quarter.
• Alimentation Couche-Tard fell 5.1% after missing analysts' expectations for third-quarter revenue, weighing on the consumer staples sector, which dropped 2.2%.

Inflation Concerns

The Bank of Canada and the Federal Reserve are monitoring inflation concerns driven by surging oil and gas prices amid the Middle East conflict. However, Canada is seen as better shielded, being a net oil exporter. The uncertainty surrounding the conflict and its impact on global markets is likely to continue driving market volatility.