Global Markets
Canadian Markets
Canada’s TSX advanced as oil and gold prices both surged more than 2%, with investors positioning cautiously ahead of key domestic unemployment data set to be released later this week. Traders are closely watching for labor market signals that could influence the Bank of Canada’s next policy decision, particularly as policymakers balance slowing growth with persistent inflation pressures.
American Markets
American markets dropped as trading resumed after the Labor Day holiday, with rising bond yields prompting traders to avert risk. The upward move in Treasury yields reflected ongoing concerns over inflation pressures and the Federal Reserve’s policy outlook, as markets weigh the likelihood of extended higher-for-longer interest rates. Equity traders grew more cautious, rotating out of growth and technology stocks that are particularly sensitive to interest rate moves, while defensive sectors such as utilities and consumer staples saw comparatively more stability. The pullback highlights persistent market unease ahead of the jobs report on Friday September 5th, which could shape expectations for the Fed’s next policy steps.
European Markets
In Europe, the STOXX index remained near a three-week low, weighed down by rising government bond yields. Long-term yields in the UK and France rose to their highest levels in more than a decade, fueling investor unease over sovereign debt sustainability and fiscal conditions. The pressure on bond markets has rekindled fears of tighter financial conditions dragging on growth.
In Spain, August unemployment rose by 0.91% from July, bringing the number of jobless to 2.43 million. The uptick highlighted continued challenges in Europe’s labor market, particularly in southern economies where seasonal summer employment typically boosts figures.
UK stocks also fell sharply, as domestic borrowing costs surged to their highest levels since 1998, driven by mounting fiscal concerns. The British pound slid against major currencies, underscoring investor worries about the UK’s deteriorating fiscal backdrop at a time when households and businesses are already struggling under the weight of high inflation and elevated interest rates.
Corporate Stock News
Air Lease – Air Lease will be acquired for about $7.4 billion in cash by a holding company backed by Sumitomo Corporation, SMBC Aviation Capital, Apollo, and Brookfield, marking a major consolidation in the aircraft leasing sector.
Amazon – Amazon’s U.S. Prime Day sign-ups fell short of last year’s totals and the company’s own target, despite expanding the promotional sales event to four days and reporting strong sales figures.
Americans (Inflation/Prices) – Consumers expressed heightened concerns about high prices, as inflation worries continue to weigh on sentiment.
Apple – Apple’s lead AI researcher for robotics has left the company to join Meta, signaling competitive talent shifts in the artificial intelligence space.
Calgary Housing Market – Calgary home sales dropped 9% in August, as higher inventory drove price declines, according to the local real estate board.
Cenovus Energy Inc – Jefferies raised Cenovus Energy’s target price to C$29 from C$25, reiterating a constructive view on the company’s acquisition of MEG Energy due to strong asset quality in the deal.
Consumer Sentiment (U.S.) – The University of Michigan’s index of consumer sentiment slid to 58.2 in August, down 5.7% from July and 14.3% from a year ago, reflecting weaker household confidence.
Federal Reserve / U.S. Jobs Market – Job growth over the past three months marked one of the weakest stretches since the 2007–2009 financial crisis, raising speculation that the Fed may be at a pivot point in monetary policy.
Gold – Gold prices hit a record high, supported by expectations of U.S. interest rate cuts and mounting concerns over rising debt levels.
Kraft Heinz – Kraft Heinz announced plans to split into two publicly listed companies, one focused on its sauces business and the other on groceries, in a bid to accelerate growth after years of sluggish sales.
Nvidia (NVDA) – Nvidia shares fell 1.91% on valuation concerns, extending a recent pullback as investors concern over extended valuation.
Northvolt – Quebec ended funding for the planned Northvolt battery factory, raising uncertainty around the future of the project.
Tariffs – A federal appeals court struck down most of former President Trump’s import tariffs on August 29. Trump warned the ruling could devastate the U.S. economy, calling it a looming collapse risk.
Tesla – Tesla’s China-made EV sales fell 4% year-over-year in August, following an 8.4% drop in July, though sales improved month-over-month as the company refreshed its lineup in a competitive market.
University of Michigan Inflation Survey – The survey showed Americans’ year-ahead inflation expectations rose to 4.8% in August from 4.5% in July, underscoring growing price concerns.
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It’s interesting to see how both Canada and the U.S. are facing very different pressures, yet labor data seems to be the central catalyst for policy decisions on both sides. The divergence between investors flocking to commodities in Canada and rotating into defensive sectors in the U.S. really highlights how sentiment shifts depending on rate expectations. Friday’s jobs report feels like it could set the tone for the next few weeks of market volatility.