Morning Money | Tuesday, October 13

THE BIG PICTURE

Canadians return from the Thanksgiving long weekend to a weakening job market. Canada lost 68,000 jobs in September after shedding 42,000 in August, and unemployment rose to 6.5%. That puts the Bank of Canada in a difficult position: the economy is cooling, but high energy prices still threaten inflation and borrowing costs.

Meanwhile, the global AI trade is hitting turbulence. New advances by a Chinese memory-chip maker have sparked a selloff in semiconductor shares, raising fresh questions about competition and sky-high tech valuations.

MARKETS THIS MORNING

• TSX futures were up about 1.1% early Tuesday as bond yields steadied and gold firmed. Toronto markets were closed Monday for Thanksgiving.
• U.S. futures were mixed, with Nasdaq futures under pressure from chip stocks. On Monday, the S&P 500 slipped 0.1% and the Nasdaq fell 0.4%.
• Asian tech shares were hit hard, especially in South Korea, as investors reassessed the chip sector.
• Oil eased roughly 2%, with Brent near US$105 a barrel. That's some relief for fuel costs, though crude remains elevated.
• U.S. bank earnings begin today, including JPMorgan, Goldman Sachs, Citigroup and Wells Fargo. Their results will offer a useful read on consumer finances, lending and the broader economy.

WHAT TO WATCH: Wednesday's U.S. inflation report could set the tone for bond yields, interest-rate expectations and markets on both sides of the border.