Morning Money | September 28
Oil is setting the tone again this morning. Crude jumped after President Trump rejected an Iranian peace proposal, reviving fears about supply through the Strait of Hormuz. Oil traded around US$108 a barrel while the U.S. 10-year Treasury yield moved near 5.2%.
For Canadians, that is a mixed picture: higher oil can support energy producers and parts of the TSX, but it can also push up gasoline, inflation and borrowing costs—especially fixed mortgage rates. Reuters market report
PREMARKET SNAPSHOT
• At 7:17 a.m. ET, Dow futures were down 0.48%, S&P 500 futures 0.45% and Nasdaq 100 futures 0.86%.
• Higher yields were weighing on precious-metal miners and expensive growth stocks.
• Nvidia was up about 1.5% after expanding its share-buyback authorization by US$150 billion.
• Meta was down about 3% after last week’s 13% jump, while Tesla slipped roughly 0.5% after a price-target cut.
CANADA TODAY
Statistics Canada has several smaller releases at 8:30 a.m., including Q2 data on non-bank mortgage lenders and July food-service sales. The bigger Canadian release arrives Tuesday: July GDP, along with an early estimate for August. Canadian day-ahead calendar · Scotiabank release calendar
ONE POSITIVE
The U.S. and China agreed to reduce tariffs on about US$60 billion of goods and extend their trade truce through January 10. That may lower costs for some retailers and exporters, although oil and interest rates are dominating markets this morning.
WHAT TO WATCH
The key question is whether oil stays near US$108. If it does, bond yields could remain elevated and keep pressure on technology and other rate-sensitive stocks. This week also brings Canadian GDP, U.S. inflation data and Friday’s U.S. employment report.
