Canada's Economy Resilient Amid Escalating Trade Tensions

The U.S.-Canada trade dispute escalated this week as Canada implemented its latest counter-tariffs on September 8, prompting a new round of retaliatory measures from the U.S. This move weighed heavily on Canadian equities, with the S&P/TSX Composite falling mid-week and losing further ground as oil prices rose.

CANADA'S ECONOMY IS RESILIENT DESPITE TRADE TENSIONS: Canada's household wealth reached $19 trillion in its eleventh consecutive quarterly gain, breaching a major milestone. This uptick in wealth is expected to support consumer spending, which has shown resilience in recent times.

The Bank of Canada is set to release its next inflation report, with markets pricing in at least one interest rate hike this year. However, experts believe that this may be overdone, given Canada's contained inflation and renewed trade tensions.