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Weekly Market Snapshot: Mideast Tensions and Chip Selloff Rattle Global Markets (July 13–17)

  Week of July 13–17, 2026 It was a rough week to be a tech investor and a good week to own oil. Escalating conflict between the US and Iran pushed crude sharply higher and rattled global markets, while a fresh wave of selling in semiconductor stocks dragged US and Asian indices lower. Closer to home, the Bank of Canada held its key rate steady, and the TSX—less exposed to chipmakers—held up noticeably better than its US and Asian peers. Here’s how the week broke down across every major market, and what it means for your wallet. 🇨🇦 Canada: TSX Day Close Change Mon, Jul 13 35,252.72 -0.15% Wed, Jul 15 (BoC day) 35,416.20 +0.27% Thu, Jul 16 35,340.15 -0.21% Fri, Jul 17 ~35,262 -0.22% Week total (Fri-to-Fri) — ~flat (about -0.1%) The TSX had a choppy but ultimately quiet week compared with its global peers. Monday's session opened with the Strait of Hormuz blockade headlines and closed lower. Wednesday brought a relief rally after the Bank of Canada's rate hold, with financials ...
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Bank of Canada Urges Urgent Action to Boost Productivity and Tackle Inflation Risks

 

The Bank of Canada (BoC) has issued a stark warning about the country’s low productivity, emphasizing the need for immediate action. In a recent address, Senior Deputy Governor Carolyn Rogers urged businesses to invest more in order to enhance productivity. This move, she emphasized, would serve as a crucial buffer against the looming threat of inflation.

Rogers declared, “It’s an emergency - it’s time to break the glass.” She stressed that increasing productivity is essential for safeguarding the economy without relying solely on higher interest rates. The BoC has already raised rates to a 22-year high, but Rogers refrained from specifying a timeline for potential rate cuts.

The Canadian economy grapples with several challenges affecting productivity:

  • Insufficient Investment: Rogers highlighted the lag in investment in machinery, equipment, and intellectual property.
  • Lack of Competition: A competitive landscape is crucial for driving productivity gains.
  • Skills Utilization: New Canadians often struggle to fully utilize their skills, contributing to the productivity gap.

Rogers warned that inflation could become a more significant threat due to factors such as:

  • Decreasing Globalization Benefits: As globalization wanes, prices face pressure from demographics, climate change, and trade tensions.
  • Productivity and Inflation: An economy with low productivity can only grow so quickly before inflation takes hold.

Despite expectations of productivity improvement post-pandemic, progress has been slow. Meanwhile, other nations outpace Canada in investment. Rogers emphasized the urgency of reversing this trend.

Canadian businesses must prioritize productivity enhancements to fortify the economy against inflationary pressures. The recent uptick in labor productivity is encouraging, but sustained efforts are necessary.

Key Statistics:

  • Canadian businesses’ labor productivity rose 0.4% in Q4 2023 after six consecutive quarters of decline.
  • Annual productivity declined by 1.8% in 2023, marking the third consecutive year of decline.

The Bank of Canada remains vigilant, ready to act if needed. Boosting productivity is not just a recommendation; it’s an economic imperative. 

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