Global Markets
Canadian Markets
The S&P/TSX Composite Index declined as investors absorbed fresh macroeconomic data. Canada’s annual inflation rate accelerated to 1.9% in August, up from 1.7% in July, largely driven by less pronounced declines in gasoline prices and ongoing food cost pressures. The pickup in inflation could complicate expectations for future Bank of Canada policy easing. Canadian housing starts fell 16% in August, raising concerns about the resilience of the domestic housing market and construction sector in the face of elevated interest rates.
American Markets
U.S. markets traded mostly in the red after notching record highs in the prior session, as investors shifted focus to the upcoming Federal Reserve policy meeting. Markets have largely priced in a 25-basis-point rate cut, with the Fed expected to act to counter softening labor market conditions highlighted by recent weak job creation and other deteriorating indicators. The cautious sentiment reflects a balancing act between optimism over monetary easing and anxiety about the underlying slowdown in U.S. economic momentum.
European Markets
European equities fell sharply, with banks and insurers—typically sensitive to interest rates—leading declines. Germany’s ZEW investor sentiment index rose unexpectedly in September, signaling improved confidence despite broader economic challenges. Eurozone industrial production rose by 0.3% month-on-month, just shy of the 0.4% forecast, as energy sector weakness was offset by gains in other industries. Spain revised its 2025 GDP growth forecast upward to 2.7% from 2.6%, reflecting relative optimism within the region.
UK markets fell as the pound strengthened against the U.S. dollar, adding pressure on exporters. Meanwhile, grocery inflation eased slightly to 4.9% from 5.0%, offering some relief to consumers, though broader labor market trends remained weak. Official data showed the number of workers on payrolls declining for a seventh consecutive month, while wage growth slowed. UK housing data reinforced signs of strain: house prices fell, though rents rose at their fastest pace in four years, reflecting affordability pressures and supply-demand imbalances in the property market.
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The Canadian data reallyBlog comment creation highlights how tricky policy decisions are right now—slowing housing starts suggest weakness, but inflation ticking up makes rate cuts harder to justify. In the U.S., it feels like markets are almost daring the Fed to cut while ignoring the deeper labor market concerns. I’m curious to see if Europe’s unexpected sentiment boost can actually translate into sustained momentum, especially with rate-sensitive sectors under pressure.
thanks for info.