Morning Money — Thursday, October 22, 2026
CANADA AND ONTARIO UNVEIL AN $8.7-BILLION INDUSTRIAL DEFENCE PLAN
Ottawa and Queen’s Park are committing new support for industries hit by U.S. tariffs:
• About $5.2 billion for steel producers to modernize, diversify and find markets beyond the U.S.
• $2.5 billion for automotive and electric-vehicle production upgrades.
• A $1-billion federal investment matching Ontario’s existing commitment to roads and infrastructure in the Ring of Fire critical-minerals region.
Why it matters: the package is designed to protect manufacturing jobs, strengthen Canadian supply chains and reduce dependence on the U.S. It could benefit steel, auto, construction and mining—but execution, trade tensions and project approvals remain key risks.
OIL JUMPS, MARKETS TURN DEFENSIVE
Brent crude surged about 3% to more than US$112 a barrel, its highest level since May, as Middle East supply concerns intensified.
That is a mixed signal for Canadians: higher oil supports energy producers and government revenues, but also raises gasoline, shipping and inflation costs just days before the Bank of Canada’s October 28 rate decision.
BEFORE THE BELL
• TSX futures: -0.66%, despite stronger oil.
• S&P 500 futures: -1.04%.
• Nasdaq-100 futures: -1.72%.
• Dow futures: -0.69%.
• The TSX closed Wednesday at a four-week high of 36,324.99, up 0.6%, after investors welcomed the Canadian industrial-support package.
BIG TECH FAILS TO CALM AI WORRIES
• Meta: down about 3% premarket. Revenue and guidance were strong, but investors are worried about mounting AI costs and a new share class intended to help fund expansion.
• Tesla: down roughly 5% after its capital-spending and 2030 vehicle-sales targets came in below expectations, despite positive free cash flow.
• Lam Research: down more than 8% as its outlook disappointed investors.
• The common theme: markets now want proof that huge AI and infrastructure spending can produce attractive returns—not just rapid revenue growth.
WHAT TO WATCH
Oil is today’s swing factor. If it stays above US$110, Canadian energy shares may hold up better than global technology stocks, but rate-sensitive sectors could face pressure as inflation expectations rise.
