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Markets Digest Hot U.S. Inflation as Iran Tensions Keep Oil Elevated

Publication:  moneysavings.ca / Canadian Money Brief  Date:  Tuesday, May 13, 2026 The TSX opens cautiously Wednesday after hotter-than-expected U.S. CPI data rattled Wall Street on Tuesday, while Strait of Hormuz disruptions continue to lift energy stocks and pressure the loonie toward 1.35 against the greenback. TSX ~34,291 S&P 500 7,400.96 ▼0.16% WTI Oil ~$102/bbl ▲ Gold ~$4,721 USD/oz ▼ USD/CAD ~1.35 US CPI Apr 3.8% ▲ (est. 3.7%) Market Overview Canadian investors are starting Wednesday on a cautious note following a mixed session south of the border. U.S. equities dipped Tuesday after April's consumer price index came in at 3.8% — a touch above the 3.7% consensus forecast and the highest reading since May 2023 — while the core rate held at 2.8%, also above expectations. The data has effectively closed the door on any Federal Reserve rate cuts in 2026, with traders now pricing in a roughly 70% chance of a rate hike by April 2027. For Canadians, the ripple effects...

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U.S. Intelligence Chair Urges Canada to Boost Defense Spending: "You're Already Past Due"

 

The chair of the U.S. House Intelligence Committee has issued a sharp call to Canada, urging the nation to increase its defense spending to meet NATO commitments. Speaking during a high-profile visit to Ottawa, the chair emphasized the importance of Canada's role in collective security, particularly amid rising global threats.

“Canada has been a steadfast ally, but in terms of defense spending, you're already past due,” the U.S. official stated, referencing NATO’s guideline that member states allocate at least 2% of their GDP to defense. Currently, Canada falls significantly short of that target, drawing criticism from some allies.

The plea comes as tensions escalate globally, with NATO facing challenges from Russia’s war in Ukraine and emerging threats in the Indo-Pacific. U.S. officials have stressed that a stronger Canadian defense budget would enhance both regional stability and the alliance’s collective strength.

In response, Canadian officials acknowledged the concerns but highlighted recent investments in military modernization, including plans to upgrade NORAD and acquire new fighter jets. Critics within Canada argue, however, that the pace of these efforts remains too slow to meet current demands.

As pressure mounts, the debate over Canada’s defense spending is expected to intensify in political and public forums.


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