Market View

The Bank of Canada held the interest rate steady at 2.25 percent, indicating it would look through the Iran war’s short-term inflation impact. On the other hand, the U.S. Federal Reserve left interest rates unchanged in the range of 3.5–3.75 percent while maintaining its projection for one cut in 2026. Lastly, Canada, Europe, and other allies are reported to be ready to contribute appropriate efforts to help with the Strait of Hormuz blockage, which could potentially reduce pressure from the surge in oil prices. The Canadian dollar was 72.92 cents USD. The U.S. S&P 500 ended the week down 2.52%, while the TSX was down 3.84%.

It was a mostly negative week across the market. Energy was the only sector to finish higher, gaining 5.1%. All other sectors ended in the red, led by consumer discretionary and industrials, which fell 4.0% and 3.8%, respectively. Real estate and consumer staples declined 3.7% and 3.4%, while materials dropped 2.1%. Information technology and financials also moved lower, down 1.9% and 1.4%, respectively. The most heavily traded shares by volume were Toronto-Dominion Bank (TD), Canadian Natural Resources (CNQ), and Royal Bank of Canada (RY).

5 from 5i

Here are five reads we found interesting last week:

• AI Isn’t an Economic Moat Killer—It Will Disrupt Industries, by Leslie P. Norton of Morningstar.

• Iran, Strait of Hormuz, and Shipping Traffic, by Sherwood News.

• An Asset-Liability Mismatch, by Ben Carlson of A Wealth of Common Sense.

• The Illiquidity Premium, by Barry Ritholtz of Ritholtz.

• Why Do Rich People Still Borrow Money?, by Ben Carlson of A Wealth of Common Sense.

   

Happy Reading & Stay Safe!

Disclosure: The analyst(s) responsible for this report do not have a financial or other interest in securities mentioned.