Daily Pulse
One of our most accessible tools, this daily comment keeps you abreast of developments on the North American and international financial markets.
Michel Doucet
Vice-President and
Portfolio Manager
March 28, 2025
Canada
Prime Minister Mark Carney says Canada will respond to President Donald Trump's trade war and tariffs on the auto sector, but won't outline new retaliatory moves until April 2. Canada has already imposed retaliatory tariffs on C$60 billion of US products and has threatened tariffs on a further C$95 billion in American items, including autos, as soon as next month. Carney says Canada must "fundamentally reimagine" its economy to reduce its reliance on the US and alter its international trade relationships, and has promised C$2 billion to help the Canadian auto sector strengthen its domestic supply chain.
United States
Value stocks are having a rare moment in the face of this year’s equity selloff. The upcoming earnings season will help determine whether the group’s outperformance against the market’s high-flyers can persist. The S&P 500 Value Index — home to shares of banks, consumer staples, health care and other companies that appear cheap compared to fundamentals — is up 0.4% this year, versus a 6.5% decline for its flashier, growth-focused counterpart. If that holds through the end of March, it would be the value gauge’s best quarterly run against its rival since the market meltdown of 2022.
Gross domestic product advanced at a 2.4% annualized rate in the October-to-December period, the third release of the figures from the Bureau of Economic Analysis showed Thursday (vs 2,3% before). The Federal Reserve’s preferred inflation metric — the personal consumption expenditures price index excluding food and energy — was revised down to 2.6%.
Europe
Inflation in France and Spain was lower than expected, supporting calls for more interest-rate cuts by the European Central Bank. Consumer-price growth in France held steady at 0.9% this month, while in Spain it slowed to 2.2%, approaching the ECB's 2% target. The reports will be a crucial input for the ECB's April 17 rate decision, with policymakers assessing the impact of President Donald Trump's tariffs and European military spending on inflation and economic growth.
Vladimir Putin proposed placing Ukraine under UN-led temporary rule for a transitional period before the country hosts elections. Putin said he believes Trump sincerely wants to end the conflict.
Asia
Xi Jinping vowed to improve market access in a meeting with more than 40 global business leaders — an effort to boost investor sentiment. The Chinese equity benchmark pared some losses.
India is reviewing US demands to cut import duties on farm goods and significantly reduce other barriers, people familiar said, as it seeks exemptions from reciprocal tariffs.