Morning Money | Wednesday, September 2
The big story this morning is energy. Oil briefly jumped to its highest level since July as renewed U.S.–Iran fighting raised concerns about supply through the Strait of Hormuz. For Canadians, higher oil can support energy producers and the TSX, but there’s another side to it: more expensive fuel can keep inflation sticky and make it harder for central banks to lower interest rates. At the same time, Canada’s trade dispute with the U.S. remains in focus, with Canadian counter-tariffs on roughly $20 billion of U.S. goods scheduled to take effect September 8.
Markets this morning: Wall Street futures are pointing modestly lower, with technology under the most pressure as higher bond yields weigh on growth stocks. Brent crude was around US$94 a barrel after briefly topping US$97 overnight, while WTI was near US$90. Gold fell to a three-week low as the U.S. dollar strengthened. Bond yields remain a major market pressure point as investors increasingly worry that higher energy costs could force interest rates to stay higher for longer.
What to watch: U.S. private-sector jobs data arrives today ahead of Friday’s payroll report, while Broadcom reports earnings after the bell. For Canadian investors, the combination of oil, bond yields and the loonie will likely set the tone for the TSX today.
