The Trade Conflict Between Canada And The United States Has Intensified

The US stock indices ended Friday’s trading session higher. By the end of the day, the Dow Jones index (US30) rose by 0.98% (weekly result -0.72%). The S&P 500 index (US500) gained 0.43% (weekly result -1.49%). The technology index Nasdaq (US100) closed Friday in the green, up 0.43% (weekly result -2.79%).

The last week of August promises to be extremely eventful for global financial markets, with a series of key macroeconomic releases and speeches by central bank officials. The main event will be the Jackson Hole Economic Policy Symposium, where Fed Chair Warsh will deliver a keynote address. Investors will closely monitor his assessment of financial conditions, especially against the backdrop of recent US Treasury intervention in the bond market and the growing volume of corporate credit issuance. Alongside central bank speeches, the market will focus on key US statistics, including July data on personal income and spending, the core PCE price index, the second estimate of Q2 GDP, and durable goods orders. Annual revisions to nonfarm payroll data and housing market statistics will also be released. An additional driver for the technology sector will be Nvidia’s quarterly financial results, which will show the real state of global demand for artificial intelligence infrastructure.

The Canadian dollar (CAD) fell to 1.37 per US dollar, retreating from a recent three‑month high amid the escalation of the trade conflict between Canada and the United States after negotiations failed. On Saturday, 50% tariffs imposed by President Donald Trump’s administration on a range of Canadian goods came into force. These tariffs cover about 5% of Canada’s annual exports to the US (around $20 billion) – including agricultural products, wine, furniture, cement, and sporting goods. Canadian Prime Minister Mark Carney stated that Canada will respond with mirror tariffs, scheduled to be introduced on September 8.

By the end of the day, Germany’s DAX (DE40) rose by 0.59% (weekly result -1.34%), France’s CAC 40 (FR40) closed higher by 0.37% (weekly result -1.67%), Spain’s IBEX 35 (ES35) gained 0.76% (weekly result +0.76%), and the UK’s FTSE 100 (UK100) ended the trading session up 0.64% (weekly result +0.62%).

In the coming week, the European Central Bank will publish the minutes of its latest meeting, at which interest rates were left unchanged following the June hike. In addition, investors expect preliminary August inflation data for France and Spain, as well as updated Q2 GDP figures for key regional economies. Additional indicators of business sentiment will come from Germany’s Ifo and GfK indices.

Crude oil prices (WTI) stabilized around $87 per barrel on Friday, ending the week with more than a 5% gain for the second consecutive time. The market is reacting to mixed signals: on one hand, Iran’s president stated that Tehran seeks to end the conflict with the US from a position of strength. On the other hand, US Treasury Secretary Scott Bessent threatened unprecedentedly harsh sanctions. Meanwhile, the military confirmed that more than 660 million barrels of oil have successfully passed through the Strait of Hormuz since May with support from the US Navy, partially easing concerns about supply disruptions.

In Asia on Friday, Japan’s Nikkei 225 (JP225) fell by 0.30% (weekly result -4.16%), China’s FTSE China 50 closed up 0.65% (weekly result -2.32%), Hong Kong’s Hang Seng (HK50) gained 1.21% (weekly result +2.79%), and Australia’s ASX 200 (AU200) ended Friday down 0.27% (weekly result -0.22%).

This week, investor attention in the Asia‑Pacific region will focus on key government meetings and macroeconomic statistics. In China, a meeting of the Standing Committee of the National People’s Congress will take place, where authorities may announce new economic support measures amid weak data. In addition, the central banks of Thailand and South Korea will hold rate meetings (rates are expected to remain at 1% and 2.75%), while the central bank of the Philippines may raise its rate to 5% due to inflationary pressure. Japan will publish unemployment data and Tokyo inflation figures, and Australia will release inflation statistics.

Singapore’s annual inflation rate in July 2026 rose to 2.2% compared to 1.9% in June, reaching its highest level since August 2024. Every month, consumer prices fell by 0.2%, reversing the zero growth seen the previous month. Meanwhile, core inflation (excluding housing and private transport) increased to 2%. Against this backdrop, the Monetary Authority of Singapore (MAS) revised its core inflation forecast for 2026 to a range of 1.5-2.5%, warning of risks to consumer demand from price pressure.

• S&P 500 (US500) 7,674.37 +33.21 (+0.43%)

• Dow Jones (US30) 53,277.01 +517.80 (+0.98%)

• DAX (DE40) 26,136.56 +153.52 (+0.59%)

• FTSE 100 (UK100) 10,748.16 +64.40 (+0.64%)

• USD Index 98.84 -0.06 (-0.06%)

News feed for: 2026.08.24

• New Zealand Retail Sales (m/m) at 01:45 (GMT+3) – NZD (MED)

• Singapore Inflation Rate (m/m) at 08:00 (GMT+3) – SGD (MED)