Morning Money — Friday Weekly Recap
A week that started with an oil shock ended with a rate shock.
The biggest story was inflation. Canada’s August CPI held at 3%, with gasoline still a major pressure point, while core inflation remained much calmer near 2%. South of the border, stubborn inflation pushed the Federal Reserve to raise rates by 0.25% — its first hike in more than three years — and signal that more tightening could follow. For Canadians, that matters because higher U.S. rates can keep pressure on bond yields, mortgages and the Canadian dollar.
*Markets this week:* Oil was the wild card. Brent surged toward US$109 after disruptions to Saudi supply, then reversed as shipments improved; it’s now around US$103 and heading for a modest weekly decline. The TSX was volatile, falling to a nearly seven-week low Wednesday before rebounding 1.1% Thursday as financials and miners rallied. In the U.S., the S&P 500 and Dow remain down on the week through Thursday, while the Nasdaq has managed a small gain after a strong tech-led rebound.
One encouraging sign: bond yields and oil both eased late in the week, giving stocks some breathing room. But the broader message from central banks is clear — inflation is back at the centre of the conversation.
*What to watch next week:* Canada’s July retail-sales report on Thursday will give us a fresh read on the consumer. Beyond the data, oil and bond yields remain the two numbers that could move markets fastest.
