Market View

Canada’s annual inflation jumped to 4.0% from 3.3%, in July higher than the consensus estimate of 3.8%, largely due to higher gasoline prices. On the other hand, The US Federal Reserve held interest rates steady at a 22-year high while signalling borrowing costs will likely stay higher for longer and implying another rate hike is on the table later this year to bring inflation back to 2%. The Canadian dollar was 74.17 cents USD. The U.S. S&P500 ended the week down 3.7%, while the TSX was down 3.7%.

All sectors ended this week down. Information Technology and Energy gave up 8.4% and 4.2%, respectively, while Real Estate slid 4.1% and Industrials edged lower 3.9%. Consumer Discretionary slipped 3.4%, and materials dropped 3.1%. Consumer Staples ended the week losing 2.8%. The most heavily traded shares by volume were Canopy Growth, Canadian Natural Resources, and TC Energy.

5 from 5i

Here are five reads we found interesting last week:

•  America is stuck in a greased-pig economy by Linette Lopez of Business Insider

• The ECB as a bellwether for the Fed, written and published by Joachim Klement

• What Matters?, authored by Joe Wiggins of Behavioural Investment

• Putting the (Insta)cart before the (Grocery) horse: A COVID Favorite's Reality Check!, published by Aswath Damodaran

• An Oral History of the Fear Index, authored by Robbin Wigglesworth of Financial Times

Happy Reading & Stay Safe!

Disclosure: The analyst(s) responsible for this report do not have a financial or other interest in securities mentioned.