Morning Money | Thursday, August 27
What matters to Canadians: The Canada–U.S. trade fight remains the biggest domestic economic story. Canada is moving ahead with retaliatory tariffs on roughly $20 billion of U.S. imports beginning September 8, after Washington imposed new duties on Canadian goods. That raises the risk of higher costs for businesses and consumers and adds uncertainty for exporters, manufacturing and the Canadian dollar. One bright spot: Canada has removed U.S. seafood from the retaliation list, suggesting Ottawa may selectively limit the impact where possible.
Markets this morning: AI is back in the driver’s seat after Nvidia delivered a strong outlook, sending its shares sharply higher before the open and lifting Nasdaq futures about 1%. S&P 500 futures are also higher, while the Dow is roughly flat. In Canada, TSX futures are slightly lower after the index pulled back 0.4% yesterday from Tuesday’s record close. Canadian banks remain in focus: TD reported quarterly profit of $4.62 billion, up from $3.34 billion a year ago, helped by strong capital-markets and U.S. banking results.
What to watch: U.S. jobless claims arrive this morning, but the bigger event is Federal Reserve Chair Kevin Warsh’s Jackson Hole speech Friday. After hotter-than-expected U.S. inflation, anything he says about rates could quickly move bonds, currencies and stocks. Canada also gets fresh GDP data Friday.
