Stocks in Canada remain stable in the face of the Trump-Putin summit, as domestic data takes center stage.
Canada Faces Trade Challenges and Economic Recovery in August 2021
Canada is grappling with the impact of a 35% levy on imports to the US that are not covered by the CUSMA pact. This levy has put a strain on the country's exports, particularly its most valuable crop, canola, as China has imposed a 75.8% tariff on canola imports, threatening to erode millions of dollars in value. The Canadian government, led by Prime Minister Mark Carney, is working on a support package for canola farmers while negotiating with Chinese officials to resolve the trade row.
Meanwhile, the US-Russia relationship remains tense, with the two leaders, Donald Trump and Vladimir Putin, meeting in Anchorage, Alaska, for a cautious and potentially symbolic gesture. The ongoing conflict in Ukraine, which began with Russia's invasion in 2022, continues to influence the relationship, with no major breakthroughs on the issue in sight.
In terms of domestic economic indicators, the S&P/TSX Composite Index, which reflects Canada's primary public equity markets, was actively tracking the country's post-pandemic recovery. However, specific levels for August 2021 were not found in the search results. Manufacturing sales and wholesale sales were on the rise, with manufacturing sales reaching C$68.5 billion in June, a 0.3% increase, and wholesale sales rising 0.7% to C$84.7 billion in June 2025.
Bond yields in Canada, which reflect investor confidence and inflation expectations, were also on the rise in 2021, with the yield on the Canadian 10-year government bond climbing above 3.44% in August to a two-week high. Inflation in Canada was also moderate, rising due to reopening and supply shocks.
In the stock market, notable losers included Goeasy Ltd, Brookfield Asset Management Ltd, Terravest Capital Inc, and Brp Inc, while Bausch Health Companies, Mda Ltd, Quebecor Inc, Ssr Mining Inc, Centerra Gold Inc, and The North West Company Inc were the prominent gainers. Major sectors that lost in today's trading were Financials, Energy, and Consumer Discretionary, while Healthcare, Communication Services, Materials, and Consumer Staples gained.
The Bank of Canada (BoC) will analyze July and August inflation data before making a decision on further interest rate cuts on September 17. A summary of deliberations among BoC policymakers showed that the governing council members were divided in their approaches to keeping the rates at 2.75 in July.
In other news, Air Canada's flight attendants' union strike is set to disrupt travels for tens of thousands, with the airline cancelling a majority of its 700 daily flights.
Note: This article is based on general trends for August 2021 and does not contain specific statistical values (indices levels, sales figures, bond yields, inflation rates) for that period as they were not found in the search results.
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- Despite the trade challenges with the US and China, the Canadian government is exploring investment opportunities in real-estate and stocks, such as the S&P/TSX Composite Index, to mitigate the impact on the economy due to the levy on imports and tariffs on canola.
- As the Bank of Canada (BoC) ponders its decision on interest rate cuts in September, people are also watching the stock market, where notable losers include companies in the Financials, Energy, and Consumer Discretionary sectors, while gains have been made in Healthcare, Communication Services, Materials, and Consumer Staples, offering opportunities for potential investors.