Canada's Economy Fails to Expand in July, Casting Shadow on Third Quarter

Canada's economy experienced a disappointing start to its third quarter after failing to expand in July. The data, released by Statistics Canada, marked a reversal of the country's three-month growth streak. According to the report, gross domestic product was unchanged in July, matching economist forecasts.

The lackluster performance was broad-based across several key industries, including manufacturing, which fell 0.9%, and retail trade, which contracted by 1%. However, some sectors managed to buck the trend, with utilities rising 1.7% and construction advancing 1.3% for a fourth consecutive monthly increase.

The data landed against a backdrop of persistent pressure on U.S. markets, where American stock index futures hovered near the flatline early Tuesday. The benchmark 10-year Treasury yield reached a new 19-year high, and oil prices remained elevated due to ongoing concerns about the Strait of Hormuz.