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Canadian Money Brief: Weekly Market Snapshot — May 26–30, 2026

TSX Composite: Resilient Near Record Highs It was a steady week for the S&P/TSX Composite, with the index trading just above the 34,500 level heading into Friday's close — not far from its 52-week high of 34,846. The market found support from several directions: optimism around a potential US–Iran ceasefire extension, strong performances in technology, mining, and industrial names, and falling bond yields following weaker-than-expected economic data. On the sector level, tech and metal mining led gains, while energy producers were mixed after oil prices pulled back from recent highs. Among the big banks, RBC, TD, and BMO each climbed roughly 1% on the week, helped by lower inflation concerns easing pressure on borrowing costs. Gold miners also had a solid run — Agnico Eagle added over 0.5% and Franco-Nevada advanced close to 1%. Year-to-date, the TSX is up approximately +9.3% , placing it third among major global indexes, behind Japan's Nikkei 225 (+29.1%)...
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Japan Sinks into Recession and Loses Its Position in the Global Economy

 

In a significant economic shift, Japan has slipped from its position as the world’s third-largest economy, falling behind Germany. The latest government data reveals that Japan’s economy contracted in the last quarter of 2023, leading to this change in ranking.

For over a decade, Japan held the second spot, but it ceded that position to China. Now, it faces another setback as Germany surpasses it. Here are the key points:

  1. Economic Contraction: Japan’s real GDP shrank by 0.1% in the final quarter of 2023, primarily due to weak spending by households and businesses. Private consumption, which accounts for more than half of economic activity, fell by 0.2% as households grappled with rising living costs and stagnant wages.

  2. Yen’s Impact: The sharp decline of the Japanese yen against the US dollar over the past two years played a crucial role. A weaker yen affects export profits when earnings are repatriated. Germany, too, faces similar challenges, despite being Europe’s largest economy.

  3. Structural Reforms Needed: Japan’s labor crunch is worse than Germany’s, and addressing the low birthrate remains a challenge. The government emphasizes structural reforms, including promoting full-time work for women and easing barriers to foreign investment.

  4. Technical Recession: With two consecutive quarters of contraction, Japan officially enters a technical recession. The country must navigate economic headwinds while welcoming a record number of foreign workers.

While the loss of its global ranking is a blow, Japan remains resilient. As it grapples with demographic shifts and economic complexities, policymakers strive to steer the nation toward sustainable growth.


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