Morning Money — Monday, September 7
Markets are starting the week with two competing forces: stronger economic momentum and another jump in geopolitical risk. Friday’s solid U.S. jobs report helped reassure investors that growth remains resilient, but it also reduced hopes for easier interest rates. At the same time, renewed U.S.–Iran attacks around Gulf shipping have pushed Brent crude back toward US$97. For Canadians, expensive oil can support energy producers and the TSX, but it also raises gasoline and inflation risks — exactly the kind of trade-off that can keep borrowing costs higher for longer.
Around the markets: Canada and U.S. cash markets are closed today for Labour Day, so the action is overseas. Japan’s Nikkei jumped roughly 2% and South Korea’s Kospi surged more than 4%, led by chipmakers, while European markets were quieter. Gold remains elevated at roughly C$6,065 an ounce. The U.S. dollar is softer, while investors continue to reassess how much central banks can ease if inflation stays sticky.
What to watch: Tomorrow is the big Canadian story. New counter-tariffs of 15% to 50% are scheduled to take effect on roughly C$27.6 billion of U.S. imports, including steel, appliances, agricultural equipment and electronics. Watch for the impact on Canadian businesses, consumer prices and the next round of Canada–U.S. trade negotiations.
