Here are five things you need to know this morning
Markets react to growing conflict in Middle East: World financial markets continue to react to the growing conflict in the Middle East. North American stocks plunged Tuesday amid concerns about the likely scope and duration of the conflict. The TSX was down more than 1,200 points in morning trading, before closing down 756 points, or 2.19 per cent. Stock futures rose early this morning after a report that Iran made indirect contact with the U.S. to negotiate an end to the war in the Middle East. However, stocks curbed gains after U.S. Treasury Secretary Scott Bessent said a proposed 15 per cent global tariff may take effect this week.
Energy impact concerns: The price of oil is rising for the third straight session following the attacks on Iran by the U.S. and Israel. Investors are starting to brace for a prolonged Middle East conflict that could stoke fresh inflation fears, threaten economic growth and undermine the case for interest-rate cuts in coming months. Disruption to the Strait of Hormuz - a chokepoint that carries roughly one-fifth of the world’s oil supply - has raised the risk of an energy-driven inflation surge. Goldman Sachs economists estimate that a sustained 10 per cent increase in oil prices boosts the U.S. consumer price index by 28 basis points.
Canada signs critical minerals deal: Canada has signed 30 new partnerships with 12 allied countries under the critical minerals production alliance. Energy minister Tim Hodgson says the deal will lead to more than 12 billion dollars in spending on mining and processing projects in Canada. He also says secure, critical mineral supply chains are part of national security and sovereignty, adding Canada is creating infrastructure to allow greater mineral processing.
Canada-Australia pension agreement: More than a dozen Canadian and Australian pension giants have signed a first-of-its-kind agreement to increase investment between the countries. Under the MOU, funds will cooperate to channel more pension capital to both markets. The Australian funds’ statement says the agreement will enable both governments to remove policy barriers and improve the business environment for investment.
MDA revenue soars: MDA Space logged higher profit and revenue in the fourth quarter as increased defence spending pushes demand. The Brampton Ont.-based company’s revenue rose 44 per cent from a year earlier, also boosted by its satellite business. The space company says it is benefiting from a partnership agreement to develop and deliver military satellite communications for Canadian forces in the Arctic, as well as a contract from the U.S. Missile Defense Agency. We’ll find out more when MDA CEO Mike Greenley joins BNN Bloomberg at 11:10 ET today.
