Below is a summary of some of the relevant news items from the Capital Markets and the Economy from the past week extracted from RBC Global Insights and FactSet Research.

You can catch up on the past four weeks’ Weekly Update in the link to my Blog.

Read my latest Smart Investor newsletter on my website. The Q3 2025 edition covers Market Review for first half of 2025, the impact of tariffs, and alternative investments. Shiuman's Corner is about classical music as balm.

Markets

Market scorecard as of close on Friday August 29, 2025.

Country	Equity Indices	Level	1 week	YTD
Canada	S&P/TSX Composite	28,564	0.8%	15.5%
U.S.	S&P 500	6,460	-0.1%	9.8%
U.S.	NASDAQ	21,456	-0.2%	11.1%
Europe/Asia	MSCI EAFE	2,722	-0.2%	20.4%

Source: FactSet

• TSX finished higher on Friday, bit off best levels and all-time high. Sectors mixed. Canadian equities end the week up 0.8% and post best monthly performance since May.

• US equities finished lower in quiet Friday trading, remaining in a tight channel through much of the session. Stocks logged a modest weekly pullback despite the S&P closing at fresh all-time high Thursday.

• Since 1928, the S&P 500 has declined an average of 1.2 percent in September, underperforming all other months. While that’s not a big decline in and of itself—after all, the market can decline by that amount on any given tough day—it’s a notable contrast to the average performance of other months (see chart below).

• September’s poor historical track record should not prompt long-term investors to make major portfolio adjustments, in our view. This seasonal cycle and other market cycles should be respected, but not dominate portfolio decisions.

• We think other factors will primarily drive long-term U.S. stock market returns, just as they have over prolonged periods in the past, such as:

  • The normal ebb and flow of the business cycle

  • Federal Reserve policy

  • Innovation

Economy

Canada

• Canada announced the removal of all retaliatory tariffs on U.S. goods covered by the United States-Mexico-Canada Agreement (USMCA) to encourage trade negotiations. Prime Minister Mark Carney described the move as a strategic step to maintain Canada’s trade advantage and prepare for the USMCA review in 2026. U.S. President Donald Trump called the decision a “welcome move,” emphasizing the importance of strong trade ties.

• The Bank of Canada (BoC) will maintain its 2% inflation target during its next monetary policy framework review in 2026, BoC Governor Tiff Macklem confirmed.

U.S.

• Treasury prices rose following Federal Reserve Chair Jerome Powell’s remarks last week at the annual Jackson Hole Economic Policy Symposium. The speech was viewed by many as an indication that the probability of a 25 basis point policy rate cut in September had increased.
• President Donald Trump last week sought to remove Lisa Cook from her post as a Fed governor. If successful, this would leave the board with a majority of Trump appointees.

Further Afield

• French Prime Minister François Bayrou will seek a vote of confidence in the National Assembly on Sept. 8. His fiscal plan—which aims at reducing the fiscal deficit to less than 3% of GDP in 2029 from over 5% in 2025, mostly due to spending cuts—has been poorly received by the opposition. Winning a confidence vote requires a majority, so the prime minister appears unlikely to win the vote, with four of the largest parties already saying they will vote against him. The government will most likely fall, in our opinion.

Notes About Companies in Model Portfolio

• Dollarama Inc. (TSX: DOL) reported on Wednesday its financial results for the second quarter ended August 3, 2025. Sales increased by 10.3% to $1,723.8 million, compared to $1,563.4 million in Q2 2024. Comparable store in Canada increased by 4.9%, over and above 4.7% growth in the corresponding period of the previous year. Net earnings increased by 12.4% to $321.5 million.

• Royal Bank of Canada5 (TSX: RY) reported on Wednesday record net income of $5.4 billion for the quarter ended July 31, 2025, up $928 million or 21% from the prior year. Diluted EPS was $3.75, up 21% over the same period. Compared to last quarter, net income was up 23% reflecting growth across each business segment.

Feel free to contact me with any questions and/or to discuss investment ideas.

Regards,

Shiuman

 

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