On Monday, Canada’s main stock index saw small gains while U. S. markets were mixed as investors processed high-level political meetings among U. S. , Ukrainian, and European leaders. Kathryn Del Greco, a senior investment adviser with TD Wealth, described the day’s trading as “fairly calm”. She stated that there was a lot happening in the political arena, particularly with the meetings between Trump, Zelenskyy, and the European leaders, and that people were closely following the discussions.
The meetings between Ukrainian President Volodymyr Zelenskyy and U. S. President Donald Trump at the White House were seen as critical in bringing an end to Russia’s war on Ukraine. This hastily arranged meeting follows Trump’s previous meeting with Russian President Vladimir Putin, during which he stated that it was now up to Zelenskyy to agree to concessions that could end the war. Del Greco believes that if any progress is made in these discussions and a peace deal is reached, it would be a relief for the markets and could set a positive tone for the coming days. However, she also noted that it is too early to predict the outcome of these meetings, which is why the market is behaving cautiously.
Del Greco added that the market has been dealing with a lot of uncertainty lately, but has become skilled at not overreacting to short-term headlines. The S&P/TSX composite index closed the day up 17. 36 points at 27,922. 85. In New York, the Dow Jones industrial average was down 34. 30 points at 44,911. 82, the S&P 500 was flat at 6,449. 15, and the Nasdaq composite was up 6. 80 points at 21,629. 77.
Looking ahead, Del Greco stated that the market will be focused on U. S. Federal Reserve chair Jerome Powell’s economic outlook, which is expected to be delivered at the Jackson Hole symposium on Friday. She believes that the market will be closely watching his words for any indication of future policies. However, she also noted that Powell has been skilled at keeping his plans secret, so the market may have to wait and see.
On the TSX, shares of Air Canada closed nearly three per cent lower after the airline announced that it is suspending its third-quarter and full-year 2025 guidance due to a labor dispute with its flight attendants. Despite a back-to-work order by the Canada Industrial Relations Board, the strike continues. Del Greco believes that this could have a longer-term impact on the company, depending on certain factors such as the duration of the strike and the extent to which air travel is affected.
The Canadian dollar traded for 72. 42 cents US compared with 72. 43 cents US on Friday. The October crude oil contract closed the day up 72 cents at US$62. 70 per barrel, while the December gold contract was down US$4.