As at July 31, 2026
| Closing 31-07-26 |
Variation 30-06-26 |
Variation 31-12-25 |
|
|---|---|---|---|
| Key interest rate in Canada (%) | |||
| Key interest rate in Canada (%) | 2.25 | 0.00 | 0.00 |
| Oil WTI (USD) | |||
| Oil WTI (USD) | $84.67 | 21.8% ▲ | 47.5% ▲ |
| Gold (USD) | |||
| Gold (USD) | $4,046.15 | 1.0% ▲ | -6.3% ▼ |
| EUR/CAD | |||
| EUR/CAD | 1.61 | -0.5% ▼ | 0.3% ▲ |
| JPY/CAD | |||
| JPY/CAD | 0.01 | 0.7% ▲ | 0.7% ▲ |
| USD/CAD | |||
| USD/CAD | 1.40 | -1.3% ▼ | 2.3% ▲ |
Sources: Bank of Canada, Bloomberg Finance L.P.
CANADIAN MARKET
1.1% (S&P/TSX Composite 31-07-2026)The Canadian market advanced 1.1% in July for its fourth consecutive month of gains.
The increase was driven mainly by the energy sector, which benefited from higher oil prices. Even though the price of gold rose slightly in July, the materials sector ended the last session of the month sharply lower. The Canadian dollar appreciated against the U.S. dollar during the period.
As for fixed income, higher bond yields weighed on Canadian bond prices. In this context, the FTSE Canada Universe Bond Index was down 1.6%.
U.S. MARKET
-1.2% (S&P 500 31-07-2026 in CAD)The U.S. market declined 1.2% in Canadian currency, versus a slight decline of 0.1% in U.S. dollars, with the greenback’s depreciation against the loonie increasing the loss for Canadian investors. At the end of the month, however, earnings announcements by major technology companies, such as Amazon and Microsoft, helped support the market by easing concerns about the profitability of their massive investments in AI infrastructure.
Even so, the technology sector’s performance was uneven. For example, Apple pulled back after management said supply constraints could detract from its growth.
The U.S. bond market also drew investors’ attention. The 10-year U.S. Treasury yield ended the month at 4.84%, its highest level since January 2025, while the 30-year yield rose to 5.24%, a level not seen since 2007. These rising long-term yields reflect investor expectations that interest rates will remain high for some time to come.
INTERNATIONAL MARKETS
0.8% (MSCI EAFE 31-07-2026 in CAD)International markets continued to advance in July, returning 0.8% in Canadian dollars.
In the United Kingdom, the FTSE 100 Index posted its biggest monthly gain, supported by corporate earnings and a strong energy sector, which advanced by more than 15% in local currency, as higher oil prices boosted large energy companies.
In the euro zone, annualized inflation edged up from 2.8% in June to 2.9% in July, reinforcing expectations that the European Central Bank will maintain a restrictive monetary policy.
In Germany, the seasonally adjusted unemployment rate went from 6.3% to 6.4%. Despite better-than-expected economic growth in the second quarter, the unemployment number came in slightly above expectations.
In Japan, the central bank left its key rate unchanged while signalling it was still prepared to tighten if inflationary pressures persisted. The stock market recorded another mixed performance, with tech companies, including semiconductor manufacturers, coming under pressure, whereas industrials and financials provided better support. The Japanese authorities also intervened in the foreign exchange market to support the yen; even so, it remained under pressure against the U.S. dollar.
EMERGING MARKETS
-4.1% (MSCI Emerging Markets 31-07-2026 in CAD)Emerging markets declined 4.1% in Canadian dollars owing to high volatility in several Asian markets.
In South Korea, the KOSPI Index rebounded strongly in the last session of the month but still ended July down more than 20% in local currency. In Taiwan, semiconductor stocks also contributed to the market’s rebound late in the month, as investors gradually returned to tech companies after their recent decline.
In the coming months, the markets will continue to be driven by corporate earnings, energy price developments, geopolitical tensions, and interest rate decisions by major central banks.
