Canada's Composite PMI Declines in September Due to Private Sector Output Pressure
Canada's Service PMI: Canada's September final service PMI dropped to 46.3, significantly below the forecast of 49.0 and lower than August's figure of 48.6, indicating a contraction in the service sector.
Global Composite PMI: The global composite PMI also fell to 46.3 from 48.4 in August, suggesting a marked contraction in private sector output, with readings below 50.0 indicating deterioration in business activity.
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Canada's Carney Provokes Trump as Markets Rally in His Favor.
Mark Carney's Influence: Mark Carney is demonstrating significant influence and confidence in his current role, suggesting he has strategic advantages.
Market Perception: His actions and demeanor indicate that he is not perceived as lacking power or resources in the financial landscape.
Bank of Canada Officials Uncertain About Future Actions
Bank of Canada's Policy Rate: The Bank of Canada maintained its policy rate at 2.25%, citing high uncertainty in the economy that complicates predictions for future rate changes.
Impact of CUSMA Negotiations: The uncertainty largely stems from the upcoming review of the Canada-United States-Mexico Agreement (CUSMA), with potential outcomes ranging from damaging tariff increases to beneficial stability in trade policy.
Economic Assessment Commitment: Policymakers expressed a commitment to closely monitor economic data and remain flexible in their response to significant changes in economic activity or inflation.
Recent Economic Indicators: Additional economic indicators include a 0.3% decline in Canada's monthly GDP for October and an unchanged inflation rate of 2.2% in November.
Canada's GDP Declines by 0.3% in October Following September Increase
- GDP Decline: Canada's monthly GDP decreased to -0.30% in October 2025, down from 0.20% in September.
- Inflation Rate: The inflation rate in Canada remained unchanged at 2.2% in November.
- Interest Rates: The Bank of Canada decided to keep the interest rate steady at 2.25%.
- ETF Insights: There are updates on the iShares MSCI Canada ETF, including a primer on the oldest Canadian ETF and a dividend scorecard.
Wall Street Outperformed by 20 Stock Markets in 2025
U.S. Market Performance: The S&P 500 has gained 15% year-to-date, primarily driven by large-cap technology stocks, but U.S. equities have underperformed compared to several international markets.
International Market Gains: Countries like South Korea and Peru have seen equity returns exceeding 80%, with strong performances in Southern Europe and resource-rich economies due to rising commodity prices and improved growth expectations.
Investment Outlook: J.P. Morgan Asset Management suggests that investors should diversify away from U.S. tech stocks, as future global equity performance may favor markets with strong earnings growth and attractive valuations.
Regional Diversification Benefits: The report emphasizes that diversifying investments can mitigate risk and enhance returns, particularly if enthusiasm for U.S. artificial intelligence themes diminishes.
5 International ETFs Worth Investing in for 2026
Investment Performance: In 2025, international stocks significantly outperformed U.S. equities, with South Korea's market rising 65% and Spain's by 40%, while the S&P 500 increased by about 15%.
Top International ETFs: Recommended ETFs for gaining exposure to international markets include the Franklin FTSE South Korea ETF, iShares MSCI Spain ETF, Franklin FTSE Latin America ETF, Vanguard FTSE Europe ETF, and iShares MSCI Canada Index Fund ETF, each with unique advantages and low expense ratios.
Market Drivers: The strong performance of international markets is attributed to factors such as favorable domestic policies, a decline in the U.S. dollar, and increased spending in Europe, particularly in Spain's banking sector and South Korea's tech industry.
Future Outlook: The trend of international stocks outperforming U.S. equities is expected to continue into 2026, making diversification through international ETFs a strategic investment approach.
Bank of Canada maintains interest rate at 2.25%
Bank of Canada Policy Rate: The Bank of Canada maintained its policy rate at 2.25%, reflecting economic growth and a strong labor market, despite previous rate cuts in recent months.
Economic Growth and Labor Market: Canada's economy grew by 2.6% in the third quarter, driven by trade volatility, while the unemployment rate fell to 6.5% in November, indicating improvements in the labor market.
Future Economic Outlook: The bank anticipates growth in final domestic demand for the fourth quarter but expects overall GDP to remain weak due to declining net exports, with growth projected to pick up in 2026 amid high uncertainty.
Inflation and Policy Response: The Bank of Canada aims to keep inflation near 2% and is prepared to adjust its policy rate if economic conditions change significantly.
Canada's Carney Provokes Trump as Markets Rally in His Favor.
Mark Carney's Influence: Mark Carney is demonstrating significant influence and confidence in his current role, suggesting he has strategic advantages.
Market Perception: His actions and demeanor indicate that he is not perceived as lacking power or resources in the financial landscape.
Bank of Canada Officials Uncertain About Future Actions
Bank of Canada's Policy Rate: The Bank of Canada maintained its policy rate at 2.25%, citing high uncertainty in the economy that complicates predictions for future rate changes.
Impact of CUSMA Negotiations: The uncertainty largely stems from the upcoming review of the Canada-United States-Mexico Agreement (CUSMA), with potential outcomes ranging from damaging tariff increases to beneficial stability in trade policy.
Economic Assessment Commitment: Policymakers expressed a commitment to closely monitor economic data and remain flexible in their response to significant changes in economic activity or inflation.
Recent Economic Indicators: Additional economic indicators include a 0.3% decline in Canada's monthly GDP for October and an unchanged inflation rate of 2.2% in November.
Canada's GDP Declines by 0.3% in October Following September Increase
- GDP Decline: Canada's monthly GDP decreased to -0.30% in October 2025, down from 0.20% in September.
- Inflation Rate: The inflation rate in Canada remained unchanged at 2.2% in November.
- Interest Rates: The Bank of Canada decided to keep the interest rate steady at 2.25%.
- ETF Insights: There are updates on the iShares MSCI Canada ETF, including a primer on the oldest Canadian ETF and a dividend scorecard.
Wall Street Outperformed by 20 Stock Markets in 2025
U.S. Market Performance: The S&P 500 has gained 15% year-to-date, primarily driven by large-cap technology stocks, but U.S. equities have underperformed compared to several international markets.
International Market Gains: Countries like South Korea and Peru have seen equity returns exceeding 80%, with strong performances in Southern Europe and resource-rich economies due to rising commodity prices and improved growth expectations.
Investment Outlook: J.P. Morgan Asset Management suggests that investors should diversify away from U.S. tech stocks, as future global equity performance may favor markets with strong earnings growth and attractive valuations.
Regional Diversification Benefits: The report emphasizes that diversifying investments can mitigate risk and enhance returns, particularly if enthusiasm for U.S. artificial intelligence themes diminishes.
5 International ETFs Worth Investing in for 2026
Investment Performance: In 2025, international stocks significantly outperformed U.S. equities, with South Korea's market rising 65% and Spain's by 40%, while the S&P 500 increased by about 15%.
Top International ETFs: Recommended ETFs for gaining exposure to international markets include the Franklin FTSE South Korea ETF, iShares MSCI Spain ETF, Franklin FTSE Latin America ETF, Vanguard FTSE Europe ETF, and iShares MSCI Canada Index Fund ETF, each with unique advantages and low expense ratios.
Market Drivers: The strong performance of international markets is attributed to factors such as favorable domestic policies, a decline in the U.S. dollar, and increased spending in Europe, particularly in Spain's banking sector and South Korea's tech industry.
Future Outlook: The trend of international stocks outperforming U.S. equities is expected to continue into 2026, making diversification through international ETFs a strategic investment approach.
Bank of Canada maintains interest rate at 2.25%
Bank of Canada Policy Rate: The Bank of Canada maintained its policy rate at 2.25%, reflecting economic growth and a strong labor market, despite previous rate cuts in recent months.
Economic Growth and Labor Market: Canada's economy grew by 2.6% in the third quarter, driven by trade volatility, while the unemployment rate fell to 6.5% in November, indicating improvements in the labor market.
Future Economic Outlook: The bank anticipates growth in final domestic demand for the fourth quarter but expects overall GDP to remain weak due to declining net exports, with growth projected to pick up in 2026 amid high uncertainty.
Inflation and Policy Response: The Bank of Canada aims to keep inflation near 2% and is prepared to adjust its policy rate if economic conditions change significantly.
