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
May 8, 2025
Canada
Barrick Mining Corp., one of the world’s top gold producers, reported higher-than-expected earnings, with production coming in at the top end of the guidance range at a time of record prices. Stella-Jones rose as much as 5.8% after it reported earnings per share for the first quarter that beat the average analyst estimate, maintained its guidance and announced the acquisition of transmission steel structures manufacturer Locweld. Intact Financial shares fall as much as 3% on Wednesday, its biggest intraday drop in a month after the property insurer’s first-quarter revenue fell short of analyst estimates. The company also reported net operating earnings per share of C$4.01. Suncor slipped as investor focus is on big maintenance projects in the second quarter, even after the oil sands producer reported better-than-expected adjusted operating earnings per share for the first quarter.
United States
As was widely expected, US monetary policymakers held rates steady in the face of rising uncertainty about the path for inflation and unemployment. While officials repeated that the economy is heading into the tariff shock with a solid labour market, committee members see the upside risks to both unemployment and inflation. Further complicating their calculus, inflation has yet to settle back down to the 2% target like it has in other jurisdictions where central banks have had more freedom to ease monetary conditions. In his opening statement, Fed Chair Jerome Powell was relatively non-committal about what comes next, but he did state that the tariff increases have been larger than anticipated. Given that the committee believes that monetary policy is currently modestly restrictive, policymakers still see themselves well-positioned to react to changes to either unemployment or inflation. Powell said that it was appropriate for the institution to remain patient, but balanced that by saying the Fed could move quickly if conditions warrant, implying that a move in June is not off the table.
Europe
Donald Trump teased a “major” trade deal today, boosting optimism. The agreement is said to be with the UK and will probably focus on cars and steel, with other details to be negotiated later.
The BOE looks almost certain to cut interest rates by a quarter point today and may signal a potential further reduction in June. It’s also set to offer its first full assessment of the impact of Trump’s tariffs, just hours before the trade deal is due to be announced.
Asia
Pakistan reserves the right to retaliate after India launched targeted strikes, signaling a potential further escalation in hostilities between the nuclear-armed rivals. The situation has sparked international concern, with US President Donald Trump calling the situation "so terrible" and saying he wants to see the conflict stop, while US Secretary of State Marco Rubio is closely monitoring the rising tensions.
President Donald Trump said he’s unwilling to preemptively lower tariffs on China in order to unlock more substantive negotiations with Beijing on trade. The president’s comments come before Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer meet this week in Switzerland with Chinese Vice Premier He Lifeng on trade.