Canada – September Market Update

Market News |

September has seen a mixture of progress and challenges in Canada’s economy. From inflation moderations and GDP growth fluctuations to energy price hikes and labor movements, Canada’s economic landscape is offering diverse developments that could influence upcoming policy decisions. Here’s a breakdown of the month’s key news and market updates.

Economic Updates

  • Canada’s inflation hit 2% in August, fueling hopes for a 50-basis-point rate cut next month. According to Statistics Canada, core inflation reached a 40-month low, while consumer prices dropped 0.2% month-on-month.
  • Canada’s GDP grew 0.2% in July, surpassing expectations, but signs of an August slowdown keep a large rate cut in play. Quarterly growth remains below the Bank of Canada’s forecast, leaving room for further easing.
  • Gas prices in Canada broke a six-week streak of declines, rising by 0.7 cents per litre on average between Sept. 12 and Sept. 19, according to Kalibrate data.
  • Port of Montreal dockworkers launched a three-day strike on Monday, September 30, shutting down two terminals that manage over 40% of the container traffic at Canada’s second-largest port.
  • Small and medium-sized businesses in Canada will receive five years’ worth of long-awaited carbon price rebates this December, with the federal government set to distribute over $2.5 billion to around 600,000 businesses, according to Finance Minister Chrystia Freeland.

Canada Stock Market Updates

September brought vibrant gains to the Canadian markets! The S&P/TSX Composite Index soared 4.16% to CAD$ 24,000.37, while the S&P/TSX Venture Composite Index climbed an impressive 4.69% to CAD$ 581.12. It’s a month of strong growth and bullish momentum across the board!

  • Quebec’s Alimentation Couche-Tard is eyeing a takeover of 7-Eleven, the world’s largest convenience store chain. While Japan’s Seven & i Holdings rejected its $38.5 billion offer, Couche-Tard may raise the bid, leaving room for a potential deal.
  • Lush Cosmetics is laying off staff and closing its B.C. woodshop as it shifts manufacturing from Vancouver to Toronto to enhance operational efficiency. A spokesperson confirmed that these changes aim to ensure the brand’s long-term success, though the number of affected employees remains undisclosed due to privacy concerns.
  • Metro Vancouver grain terminal workers began their strike on Tuesday, September 24, with the Grain Growers of Canada warning that the action could halt nearly 100,000 metric tonnes of daily exports, costing about $35 million.
  • NextStar Energy’s battery plant in southwestern Ontario is on track to start production in late 2025, with its first module expected this month. Currently employing 350 people, the facility plans to hire 200 more by year-end and ultimately create 2,500 jobs.

Canada’s top gainer and top loser stocks for September

Summary

Canada’s economy is undergoing a phase of adjustment, with inflationary trends and labor movements having a significant impact. Despite some volatility, the stock market posted robust growth. In the future, economic policy and energy developments will play crucial roles in determining Canada’s trajectory.

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