Canadian stocks settled at a seven-month low Tuesday, pulled down mostly by resource stocks on worries over the political impasse in Greece. The political uncertainties in Greece continued after major parties failed to reach an agreement on a coalition government. The troubled nation now heads for a new election in June, the result of which could also probably be splintered.
Investors largely shrugged of some upbeat economic data from the eurozone led by Germany, and as well some mixed data from the U.S. Global markets roiled following the volatile developments in Greece, with the euro continuing its several days of slide.
Toronto's main index, the S&P/TSX, closed Tuesday at 11,343.13, down 145.40 points or 1.27 percent. The S&P/TSX Composite Index touched an intraday high of 11,502.24 and a low of 11,325.71.
The TSX Venture Index closed at 1,240.07, down 63.76 points or 4.89 percent. The index opened at 1,290.98 compared to its previous close of 1,303.83.
The political turmoil in Greece took center-stage Tuesday as the major parties failed to reach an agreement at forming a coalition government. As a result, the troubled nation is now headed for new elections in June. The Greek President, Karolos Papoulias, is expected to make provisions for a caretaker government for the interim period. This could mean an extended period of political uncertainty in the country with all likelihood of splintered results in the next elections as well. Global markets reacted sharply to the news and the euro continued to slide.
The Eurozone finance ministers in their monthly meeting were unanimous that the bailout agreement for Greece cannot be renegotiated. This could mean Greece would be forced to take a decision if it should continue in the eurozone or quit.
Most major components of the S&P/TSX Index were in the negative territory, driven by declines in resource stocks with Metals & Mining, Energy, and Materials Indices taking the lead.
The Metals & Mining Index plunged 3.68 percent with Teck Resources Limited (TCK.B.TO) shedding 4.10 percent, while silver producer Silvermex Resources Inc. (SLX.TO) dropped 11 percent. Osisko Mining Corporation (OSK.TO) shed 0.93 percent, while Lundin Mining Corp. (LUN.TO) declined 4.34 percent. First Quantum Minerals Ltd. (FM.TO) slipped 2.94 percent.
U.S. crude oil futures dropped to settle at a five-month low Tuesday, with crude oil futures for June dropping $0.80 or 0.8 percent to close at $93.98 a barrel on the NYMEX.
The Energy Index fell 1.85 percent with Suncor Energy (SU.TO) dropping 1.14 percent and Canadian Natural Resources Limited (CNQ.TO) losing 2.68 percent. Bankers Petroleum Ltd. (BNK.TO) shed 7.42 percent, while Encana Corp (ECA.TO) shed over 2 percent. Talisman Energy Inc. (TLM) shed 3.20 percent.
Lundin Petroleum AB (LUP.TO) was down close to 5 percent, Bonterra Energy Corp. (BNE.TO) dropped 1.81 percent and MEG Energy Corp. (MEG.TO) was down 0.83 percent.
The Materials Index plunged 3.39 percent with Potash Corporation of Saskatchewan Inc. (POT.TO) down 0.79 and Mercator Minerals Ltd. (ML.TO) down 2.90 percent. Uranium One Inc. (UUU.TO) was up 0.40 percent.
Uranium producer Paladin Energy Ltd (PDN.TO) shed over 9.23 percent after reporting a third quarter loss that widened from a year ago, while revenues also dropped significantly.
Gold futures for June delivery shed $3.90 or 0.3 percent to close at $1,557.10 an ounce Tuesday on the NYMEX.
The Global Gold Index plummeted 3.57 percent, led by shares of B2Gold Corp. (BTO.TO) that plunged over 8 percent. Eldorado Gold Corp. (ELD.TO) fell 5.03 percent, while Kinross Gold Corp. (K.TO) slipped 4.79 percent. Barrick Gold Corp. (ABX.TO) lost 3.87 percent and Goldcorp Inc. (G.TO) slipped 2.59 percent.
The Financial Index slipped 0.55 percent with Manulife Financial Corp. (MFC.TO) down 3 percent and Sun Life Financial Inc. (SLF.TO) down 2.40 percent. Royal Bank of Canada (RY.TO) dropped 0.58 percent, while Toronto-Dominion Bank (TD.TO) slipped 1 percent. Bank of Nova Scotia (BNS.TO) inched up 0.29 percent.
Independent equipment finance company Element Financial Corp. (EFN.TO) reported a first quarter loss that narrowed from a year ago. The stock shed 4.39 percent.
Financial services provider HOMEQ Corp. (HEQ.TO) edged up 0.33% after reporting a swing to profit in first-quarter from a year ago.
In economic news from the U.S, the Labor Department said that the seasonally adjusted consumer price index was unchanged in April, after a 0.3 percent gain in March. Excluding volatile food and gas costs, core prices rose 0.2 percent.
A report from the U.S. Commerce Department revealed that retail sales in saw a modest increase in the month of April. The report showed that retail sales edged up by 0.1 percent in April following a revised 0.7 percent increase in March. Economists had expected sales to increase by 0.1 percent compared to the 0.8 percent growth originally reported for the previous month. Excluding a 0.5 percent increase in auto sales, retail sales still rose by 0.1 percent in April compared to a 0.8 percent increase in the previous month.
Separately, the Federal Reserve Bank of New York said its general business conditions index jumped to 17.1 in May from 6.6 in April, with a positive reading indicating an increase in regional manufacturing activity. Economists had expected the index to show a more modest increase to a reading of 10.0.
From the eurozone, the German economy expanded more than expected in the first quarter of 2012, data released by the Federal Statistical Office showed. Gross domestic product rose 0.5 percent from the prior quarter, when it fell 0.2 percent. Economists had expected only 0.1 percent growth for the first quarter.
Data from the Eurostat revealed the eurozone economy avoided recession in the first quarter. Gross domestic product for the 17-nation bloc remained flat sequentially after shrinking 0.3 percent in the fourth quarter. Economists expected 0.2 percent contraction for the first quarter.
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Market Analysis
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.