📰 Weekly Markets Brief | July 13 – 20, 2025
Canada – Debt & Tariff Update
| Index | 18 Jul Close | Weekly Move |
|---|---|---|
| S&P/TSX Composite | 27,314.01 | ▲ +1.1% |
| S&P/TSX 60 | 1,625.71 | ▲ +1.3% |
Market Highlights – Canada
- New Tariffs (18 Jul): Starting 1 Aug, the U.S. will add a 35% tax on most Canadian imports; Canada is asking for exemptions and may strike back.
- 10-Year GoC Yield (19 Jul): Fell to 3.53% after touching 3.58%—quick moves that can affect fixed-rate mortgages.
- End of 1-Month T-Bills (17 Jul): The Bank of Canada will stop issuing 1-month bills after the 29 Jul auction, trimming very-short-term government debt.
United States – CPI Upside & Mixed Tape
| Index / Yield | Weekly Move | Note |
|---|---|---|
| S&P 500 | ▲ +0.59% | Tech strength keeps index positive |
| Nasdaq | ▲ +1.51% | AI-related stocks lead gains |
| Dow Jones | ▼ –0.07% | Value names lag |
| 10-Yr UST | ▲ 4.43%(+0.18bp) | Higher CPI nudges yields up |
Market Highlights – U.S.
- CPI (Tue): June inflation +2.7% YoY, core +2.9%—price pressures reignite, lowering odds of a near-term Fed rate cut.
- Building Permits (Fri): 1.397M annual pace—slightly higher despite elevated mortgage rates, signaling cautious optimism from builders.
- Bond Market: Yields climb, reflecting expectations that rates stay “higher for longer.”
- GENIUS Act Signed: President Trump signed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, the first federal framework for stablecoins. Key points: only federally supervised issuers may mint tokens; every coin must be backed 1-to-1 by U.S. dollars or Treasuries; strict AML/KYC oversight applies. The law paves the way for banks and regulated fintechs to bring stablecoins into mainstream payments.
Stocks in Focus
| Ticker | Weekly Move | Headline |
|---|---|---|
| NFLX | ▼ –2.9% | Beat Q2 earnings but pulls back after big YTD rally. |
| GOOGL | ▼ –3.0% | Traders await 24 Jul results; focus on Cloud and AI. |
| ETH | ▲ +19% | Upgrade optimism lifts Ethereum to about $3.7K. |
Why It Matters
- Canada: Strong demand for government bonds and measures to offset U.S. tariffs bolster investor confidence and keep financing conditions steady.
- United States: Inflation remains stable and relatively low, giving the Fed room to consider a measured rate cut down the road.
