Here are five things you need to know this morning
TSX hits record high: With tariff threats and persistent inflation challenging the Canadian economy, it is somewhat surprising that Canadian stocks have hit an all-time high. The S&P/TSX Composite closed above the 28,000-point level for the first time ever on Thursday. The Toronto market has advanced 13.5 per cent since the start of the year, driven by banks and resource stocks, in particular gold miners.
Investors watching Powell: U.S. stock markets fell for the fifth straight session Thursday, as investors wait for an eagerly anticipated speech by U.S. Federal Reserve Chair Jerome Powell at the Jackson Hole Symposium. A selloff in big tech this week has halted the record-breaking rally in U.S. stocks. Investors are awaiting Powell’s latest policy blueprint, weighing whether the Fed will stay cautious on inflation, which is showing signs of stickiness, or bow to pressure from U.S. President Trump and indicate a willingness to cut interest rates soon. The speech is scheduled for 10am ET.
Carney talks trade with Trump: Prime Minister Mark Carney spoke with U.S. President Donald Trump Thursday, in a “wide-ranging conversation” that included trade and the war in Ukraine. The two leaders talked about “trade challenges, opportunities, and shared priorities in a new economic andsecurity relationship between Canada and the U.S.,” according to a statement from Ottawa. They also discussed “how to build on the President’s leadership to support long-term peace and security for Ukraine and Europe.” The two leaders agreed to speak again soon.
MEG agrees to Cenovus takeover: There’s a multi-billion-dollar takeover in Canada’s oil patch today. MEG Energy has agreed to be acquired by Cenovus, beating out a bid from Strathcona Resources. The deal is valued at just under $7 billion dollars and the transaction will be three quarters cash and one quarter stock. The takeover will unite the two northeast-Alberta based oil sands companies and is expected to close in the fourth quarter.
Mixed reading on retail sales: We have a mixed reading on the Canadian consumer today. Retail sales rose 1.5 per cent in June, led by increases at food and beverage retailers. However, StatsCan’s advance estimate for July suggests that sales decreased 0.8 per cent in that month.
