Morning Money | Friday, August 28

The big story this week was the return of serious Canada–U.S. trade tension. After talks broke down, Ottawa announced dollar-for-dollar counter-tariffs on roughly $28 billion of U.S. goods, while also rolling out new support for affected Canadian workers and businesses. For Canadians, the concern is straightforward: more tariffs can raise costs, pressure export-heavy industries and keep the Canadian dollar under strain.

Markets had a stronger tone by the end of the week. The TSX stayed close to record highs, helped by technology and resource stocks, while Canada’s big banks all reported better-than-expected quarterly profits. In the U.S., Nvidia delivered another major earnings beat and strong outlook, sending its shares sharply higher and helping the Nasdaq jump 1.6% on Thursday. The loonie remained soft around 72¢ U.S., while oil held near $90 a barrel as Middle East uncertainty continued.

What to watch: Canada’s latest GDP report is due this morning, and markets are also waiting for Fed Chair Kevin Warsh’s Jackson Hole speech for clues on where U.S. interest rates are headed next. Both could move currencies, bond yields and stocks into next week.