From the Bank of Canada's steady hand to a surge in housing starts and Ottawa's new financial crime-fighting agency — here are the five money stories every Canadian should have on their radar this morning. 1 Bank of Canada Rate Holds at 2.25% — Next Decision June 10 The Bank of Canada kept its overnight rate at 2.25% on April 29 and has signalled it intends to stay put for now. Governing Council is keeping a close eye on Middle East conflict spillover into energy prices, ongoing U.S. tariff uncertainty, and whether inflation — currently hovering just above the 2% target — becomes entrenched. Bond markets are currently pricing in roughly an 18% chance of a 25-basis-point cut by the July 15 announcement, making a move at the June 10 meeting unlikely. 💡 What it means for you: Variable-rate mortgage and HELOC holders can exhale — no surprise hikes on the horizon. But don't expect big rate relief either; the "lower-for-longer" window appears to be closing. 2 Mortgage...
Market Optimism Rises as Tariff Concerns Ease
The stock market is showing signs of optimism today, with futures for the Dow Jones Industrial Average, S&P 500, and Nasdaq all climbing. Investors are responding positively to reports suggesting that the next wave of tariffs proposed by President Trump may be more targeted and less severe than initially feared. This development has eased concerns about a potential escalation in the trade war, which could have significant implications for global trade and economic growth.
S&P 500 futures rose by 0.9%, while Nasdaq futures led the gains with a 1.1% increase. Dow Jones futures also advanced by 0.7%. The market's positive momentum follows a recent reversal of a four-week losing streak, signaling renewed confidence among investors.
The proposed tariffs, expected to be announced on April 2, are reportedly being narrowed to focus on specific trade imbalances. This strategic adjustment has provided relief to markets, which had been bracing for broader and more disruptive measures. As a result, the yield on the 10-year Treasury bond rose slightly, reflecting improved risk appetite among investors.
Looking ahead, market participants will closely monitor upcoming economic data, including the Federal Reserve's preferred inflation gauge and consumer confidence surveys, to gauge the broader economic outlook. For now, the tempered approach to tariffs has injected a dose of optimism into the markets, offering a welcome reprieve from recent volatility.
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