Below is a summary of some of the relevant news items from the Capital Markets and the Economy from the past week extracted from RBC Global Insights and FactSet Research.

MARKETS

Market scorecard as of close on Friday May 8, 2026.

Source: FactSet

• TSX finished higher in Friday afternoon trading, near best levels. Sectors mixed. Materials the leader. Canadian equities closed 0.6% ahead weekly but again lagged US peers.
• US equities finished higher in Friday trading, ending not far from session highs. S&P and Nasdaq logged fresh record closes. The S&P 500 and Nasdaq stock indexes reached new highs during the week as concerns over the Iran conflict took a back seat to enthusiasm over continued AI investments. However, breadth was only narrowly positive with equal-weight S&P lagging the cap-weighted index by ~50 bp.
• 
• Geopolitical headlines will likely remain noisy with the U.S. and Iran conflict locked in a negotiating phase. Recent strength in equities has been fundamentally supported by sturdy profit growth, but we are mindful that markets have largely embraced the narrative of a timely resolution. This leaves the outlook more sensitive to delays, as the cumulative effects of high commodity prices could become more pronounced over time. Keeping a long-term perspective, combined with an awareness of evolving risks, remains a useful approach for navigating the near-term uncertainty.
• Read an article from Global Insight Weekly (May 7, 2026) on the tension between improved efficiency from artificial intelligence and the impact on employment of white collar workers.
• ECONOMY
• Canada
• Canada recorded its first trade surplus in six months with a CA$1.8 billion surplus in March 2026, reflecting strong momentum in oil and precious metals exports.
• The Canadian economy lost 18,000 jobs in April. The unemployment rate is now at a six-month high of 6.9% as trade uncertainty and geopolitical disruptions weighed on the labour market. Headline labour market data in Canada looks gloomy in 2026, but beneath that lies more encouraging details: Fewer permanent layoffs and stable hidden unemployment point to easing in cyclical weakness and underlying resilience. Read the latest report from RBC Economics “The hidden resilience in Canada’s labour market” here.

U.S.

• The Trump administration appeared keen to find an off-ramp from the Iran conflict as U.S. gasoline prices reached new highs. In an opinion poll by National Public Radio, PBS News, and Marist released May 6, 81% of Americans said gas prices are a strain on their household budgets and 63% (including a third of Republican voters) blamed President Trump.
•  Oil prices fell sharply on May 5 following a pre-market report by news website Axios that suggested further talks with Iran are likely over the next 30 days, citing White House sources. West Texas Intermediate (WTI) crude oil subsequently traded near $90/barrel, compared to $110/barrel at the end of April.                                                    

Further Afield

• The European Central Bank (ECB) and Bank of England note both direct and indirect inflation impacts: the immediate effect of higher fuel prices, and the indirect effects from companies generally raising prices. Markets are anticipating two more interest rate increases this year as a result.
• The yen has made sharp moves against the U.S. dollar since the end of April. The pair hit a 10-week intraday high of 155.04 on Wednesday as traders consider the potential of Japan’s Ministry of Finance intervening in the market.

 Notes About Companies in Model Portfolio

• Element Fleet Management Corp. (TSX: EFN) announced on Wednesday financial and operating results for the three-month period ended March 31, 2026. Quarterly net revenue of $324 million, a 17% year-over-year increase, reflecting strong contributions across all income streams. Adjusted diluted EPS increased 24% year-over-year to $0.35, as a result of continued operating momentum and consistent share repurchases.
• Fortis (TSX: FTS) released on Wednesday its Q1 2026 financial results, with net earnings of $501 million or $0.99 per common share. It was a decrease of $0.01 per common share compared to the Q1 of 2025.
• Pembina Pipeline Corporation (TSX: PPL) announced on Thursday its financial and operating results for Q1 2026. PPL reported first quarter earnings of $498 million, down from $502 million same period 2025.

Feel free to contact me with any questions and/or to discuss investment ideas.

Regards,

Shiuman

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