Morning Money : Weekly Recap September 11
Oil and trade were the two big stories for Canadians this week. Crude surged more than 7% as conflict disrupted Middle East supply routes, briefly pushing Brent above US$108. That is a boost for Canadian energy producers, but it also raises the risk of higher gasoline prices, inflation and borrowing costs. At the same time, Canada-U.S. trade tensions escalated again: Ottawa’s new counter-tariffs took effect, while Washington announced fresh restrictions on Canadian goods. For Canadian businesses and consumers, that means more uncertainty around costs, exports and investment.
Markets felt the pressure. The TSX fell for four straight sessions and hit a five-week low on Thursday as higher oil and bond yields weighed on sentiment. In the U.S., the S&P 500 and Nasdaq were both down about 1.6% for the week through Thursday, while the 10-year Treasury yield climbed toward 5%. U.S. producer inflation also came in hot, reinforcing concern that the Federal Reserve may have to raise rates rather than cut them.
What to watch next week: Canada gets a fresh inflation reading on Monday, and the Federal Reserve delivers its rate decision Wednesday. With oil still above US$100, both could move markets quickly.
