Financial markets were roiled on Wednesday after Iran fired missiles at U.S. forces in Iraq, sending Asian stocks and U.S. Treasury yields sliding and jolting oil prices higher as investors feared a wider conflict in the Middle East.
Iran’s missile attacks on the Ain Al-Asad air base and another in Erbil, Iraq, early in the day came hours after the funeral of an Iranian commander whose killing in a U.S. drone strike has intensified tensions in the region.
Early reports of the attacks sparked a sudden rise in risk aversion on worries over how the United States would respond. But by early afternoon, Asian equities had trimmed losses, the yen had stabilized somewhat and U.S. bonds tempered their rally as investors paused for breath.
“We are getting exaggerated moves but that’s of course volatility playing. Markets simply hate uncertainty. It’s an old adage but it definitely holds true in the current situation – markets can price risks but they can’t price uncertainty,” said James McGlew, executive director of corporate stockbroking at Argonaut in Perth.
U.S. President Donald Trump said in a tweet late on Tuesday that an assessment of casualties and damage from the strikes was under way and that he would make a statement on Wednesday morning. Trump said that “All is well!” and “So far, so good!.”
A U.S. official said the United States was not aware of any casualties from the strikes.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.5% around 0445 GMT, having dropped more than 1% earlier in the day. China’s blue-chip CSI300 index was 0.48% lower.
Japan’s Nikkei was down 1.29%, also paring earlier losses of over 2%, while Australian shares clawed back from a more-than-1% drop to shed 0.18%. U.S. S&P500 e-mini stock futures, which had earlier tumbled nearly 1.7%, were down 0.28%.
Rob Carnell, Asia-Pacific chief economist at ING in Singapore, said possible further escalation of tensions between Iran and the United States could still provoke a prolonged negative market reaction.
“If you see U.S. treasuries rallying a bit this morning, expect them to rally quite a bit further should there be a forceful response from the United States, which I’d imagine there would be…from a market perspective I think this one could run and run,” he said.
The yield on benchmark 10-year U.S. Treasury notes last stood at 1.7864%, down from a U.S. close of 1.825% on Tuesday, but up from session lows. U.S. 10-year Treasury futures had earlier peaked at their highest level since November, and were last up 0.24%.
The two-year yield fell to 1.5183% compared with a U.S. close of 1.546%.
The yen, which had hit its strongest point against the greenback since October in morning trade, gave up most of its gains later in the day. The U.S. currency was last down just 0.08% against the yen at 108.33.
The euro was 0.04% weaker, buying US$1.1147 and the dollar index, which measures the greenback against six major peers, was 0.07% lower at 96.940.
In commodity markets, global benchmark Brent crude futures shot back above US$70 per dollar to their highest level since mid-September in the initial hours after Iran’s strikes.
They were last up 1.36% at US$69.20 per barrel, while U.S. crude added 1.26% to US$63.49 a barrel.
Gold also fell below a key psychological level as initial fears eased. The precious metal was 1.16% higher on the spot market at US$1,592.18 per ounce, having earlier blasted through US$1,600.
On Tuesday, shares on Wall Street had amid worries over U.S.-Iran tensions. The Dow Jones Industrial Average fell 0.42%, the S&P 500 lost 0.28% and the Nasdaq Composite dropped 0.03%.
Analysts say the escalating Middle East tensions are likely to keep markets on edge.
“If it does look like we’ve got U.S. casualties, then I don’t think Trump is going to just stand back and take that,” said Matt Simpson, a senior market analyst at Gain Capital in Singapore. “World War III has been thrown around. I don’t think we’re there yet. But it does look like Iraq II.”
TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.
The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.
The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.
Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.
Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.
Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.
This report by The Canadian Press was first published Sept. 19, 2024.
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.
TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
This report by The Canadian Press was first published Sept. 19, 2024.
