Here are five things you need to know this morning
Despite war, stocks hit record highs: Despite the war in the Middle East, and the resulting impacts on energy prices and the global economy, stocks continue to move higher. Yesterday the main U.S. index, the S&P 500, closed at a record high, while the TSX composite is less than 400 points from its peak. Stock markets have rebounded as signs of easing tensions in the Middle East combined with a fresh burst of AI optimism and corporate earnings pushed investors to abandon their cautious views. Still, delegates at the International Monetary Fund and World Bank meetings in Washington have cautioned that markets are underestimating the war’s economic damage.
Canadian real estate still sluggish: Canadian home prices fell for a sixteenth straight month as rising mortgage rates kept buyers on the sidelines. Data from the Canadian Real Estate Association (CREA) shows the benchmark price slipped 0.4 per cent in March, the lowest level since 2021. Higher oil prices tied to the Middle East conflict pushed mortgage rates higher, adding pressure during what’s typically the spring buying season. Meanwhile CREA has cut its 2026 housing outlook. The association is now forecasting 474,972 home sales this year, which would be one per cent higher than 2025. In a January forecast, CREA predicted sales would climb 5.1 per cent in 2026.
REIT takeover: We’re watching First Capital REIT today as Choice Properties REIT and Kingsett Capital are teaming up to acquire the Canadian real estate company in a deal valued at over $9 billion, including assumed debt. Choice Properties will acquire roughly five billion dollars worth of shopping centres, while Kingsett will take over four billion dollars of assets and all remaining units.
Snacks boost PepsiCo: PepsiCo posted sales and profit in its latest quarter that topped estimates, as demand for snacks improved following price cuts. Organic sales rose 2.6 per cent, beating forecasts, with the company seeing recovery in its Frito-Lay salty snacks division after cutting prices by as much as 15 per cent. Pepsi reaffirmed its full-year outlook as the company also moves toward healthier offerings and a revamp of Gatorade.
Quantum surge: We’ll be watching shares of Xanadu Quantum Technologies again today after shares of the Toronto-based company surged by 70 per cent yesterday. The quantum computing sector has been rallying after microchip leader Nvidia announced that its new artificial intelligence models, called Ising, will help the operations of quantum computing systems. Xanadu has been a publicly traded company for less than a month. We are reaching out to Xanadu for an update, as well as analysts and investors in the quantum space.
