Insights

The trade war remains in its early stages, with U.S. tariff revenues trailing behind announcements into the summer. Nevertheless, import tariffs collected as a share of U.S. imports have already risen to their highest level since the 1940s.

Global equities have been directionless over the past few weeks. One notable economic development was the Canadian inflation report for May, which contained higher-than-expected numbers for the first time this year.

While 2023 had its ups and downs, it has proven to be a year of economic and market resilience. Economic growth has slowed, but there have been positive surprises, especially in the U.S. where the consumer has been stronger than elsewhere.

The U.S. Federal Reserve held interest rates steady in its policy update this week, following the path of other central banks

All eyes have been focused on the Middle East over the past two weeks, as the region has seen a sharp escalation in tensions following the Hamas terrorist attack on Israel and the responding military assault on Hamas in Gaza.

Recent signs of a cooling Canadian economy led the Bank of Canada to hold interest rates steady this week, as anticipated.

The second half of the summer has brought a slight decline in both equity and bond markets. Investors’ immediate attention is on third-quarter results from Canadian banks and takeaways from a major conference of global central bank leaders.