Morning Money- Weekly Roundup

It was a week where oil and interest rates took centre stage. Renewed U.S.–Iran tensions pushed Brent crude into the mid-US$90s and briefly near US$97, reviving inflation worries just as investors were debating whether central banks may need to keep rates higher. For Canadians, that is a mixed bag: stronger oil can support energy producers and the Canadian economy, but pricier fuel and higher bond yields can make the cost-of-living and borrowing picture tougher.

Markets felt the pressure early in the week. The TSX dropped 1.2% Tuesday to a four-week low as higher global bond yields and weaker gold weighed on stocks. Sentiment improved Thursday after Fed Governor Christopher Waller cooled fears of an imminent U.S. rate hike, sending U.S. stocks sharply higher and bond yields lower. Tech also found its footing again, with AI-related names helping the rebound.

*What to watch:* Today is jobs day on both sides of the border. Canada’s August employment report and U.S. payrolls could quickly reset expectations for interest rates. Next week, watch the fallout from the jobs numbers, oil and the Middle East, and Canada’s new counter-tariffs on U.S. imports scheduled to take effect September 8.