Markets continue to trade on war news from the Middle East. Equity markets were buoyant earlier in the week before Donald Trumps’ address to the nation Wednesday evening. Thursday morning saw a sharp sell-off as traders weighed the probability of an intensification of the conflict. By the end of the day equity markets had rebounded. Bonds had a similar trajectory. In short, it was a week of confusion.
| Index | Close Mar 26th 2026 | Close Apr 2nd 2026 |
| S&P500 | 6,499 | 6,590 |
| TSX60 | 31,888 | 33,108 |
| Canada 10 yr. Bond Yield | 3.57% | 3.48% |
| US 10 yr. Treasury Yield | 4.43% | 4.31% |
| USD/CAD | $1.38517 | $1.39173 |
| Brent Crude | $107.58 | $109.05 |
| Gold | $4,399 | $4,676 |
| Bitcoin | $68,424 | $66,923 |
Source: Trading Economics & Factset
Despite the changing rhetoric coming from the Whitehouse, equity markets, have been remarkably resilient. There is still a buy the dip mentality amongst some investors. There is also some short covering providing a floor as hedge funds book profits on their short positions. While both factors are providing some support to the equity markets, they can not be relied on for a return to a more normal market.
If things weren’t already confusing enough, Donald Trump went on television Wednesday evening to update the world on the Middle East war. His address was filled with contradictions, saying that the conflict was almost finished then threatening to escalate the bombing campaign. At the end of the day, there is no timeline for an end to the conflict and no clear idea what constitutes the Trump administration’s war aims. For those that have the inclination, you can watch the entire address here.
The Persian Gulf is not the only oil producing region under attack. Ukraine has stepped up its attacks on Russian ports and oil infrastructure. In the latest moves, they have struck Russia’s facilities on the Baltic Sea. The ongoing degradation of Russia’s ability to refine or export petroleum products has reduced their exports from the Baltic by 40%.
According to the latest ADP report, the US added 62,000 new jobs in March. Most of the jobs were in education and health services. Construction also added to the count with over 30,000 new jobs in the past 2 months.
In corporate news, Stellantis (Chrysler/Fiat) is reportedly in talks with Chinese auto manufacturer Zhejiang Leapmotor Technology to assemble EVs in its idled Brampton Ontario plant. Reception of this news has been “cool”. The plant would be used to do the final assembly of vehicle using parts imported from China. That brings no benefit to the rest of the auto manufacturing ecosystem in Canada. On the flip side, the plant, which had employed 3,000 workers, has been idle for several years. Earlier plans to build the Jeep Compass were cancelled last year after Trump’s tariff announcement. Production was mover to the US.
Swiss miner and commodities trader Glencore has applied for Federal funding to modernize its copper processing plants in Quebec. The application is under the new Strategic Response Fund. The application covers both production facilities and emissions reduction. The plant in Rouyn-Noranda processes copper concentrate and recycled materials such as electronic waste.
I remember watching the first Apollo missions that eventually landed a man on the moon. (I also remember watching the Mercury program, but that might age me) This week, the first launch of another moon mission blasted off from the Kennedy Space Centre. The crew includes Canadian Astronaut Jeremy Hansen. The 10-day mission will loop round the moon, but not land. It will take the crew deeper into space than anyone else has gone.
We’ll close off here with this out of the world classic from Credence Clearwater Revival…. Have a great Easter weekend.
Russ Lazaruk, RIAC, CIWM, CIM, FCSI
Managing Director & Portfolio Manager
