Franklin FTSE Canada ETF

FLCA

Market cap $801M

Canadian earnings may be strong despite economic weakness. Higher commodity prices providing tailwind for energy and mining stocks. Stocks may not be rewarded for strong earnings though.

Canada's economy is recovering gradually despite trade and inflation pressures. Strong banks and commodities continue to support Canadian ETFs.

The minutes showed an agreement among the top six senior policymakers that leaving the benchmark rate unchanged was appropriate to balance the risks of upward price pressures and a weak economy.

Excess global imbalances are widening again, with risks of an economic disruption heightened by an increasing share of financial activity being conducted outside of the regulated banking sector, says Canada's top central banker.

Canada unveiled a strategy on Monday ​to accelerate the development of ‌nuclear power, setting out a goal of building up to 10 ​new large-scale reactors and ​streamlining approvals for future projects.

The consumer-price index climbed 1% in May, pushing the annual rate to 3.2%, the highest level since the end of 2023, Statistics Canada said.

The move aims to boost lending as the government seeks to lure investment to kick-start the economy.

Retail sales in April rose 0.5% from the month before, driven by increased trade at gas stations and fuel vendors.

Producer price in Canada continued to rise last month as Iran war and disruption to shipping through the Strait of Hormuz buoyed crude oil costs and hit supply chains.

The Bank of Canada (BoC) maintained its key overnight rate at 2.25% on Wednesday, as expected, with the bank rate staying at 2.50% and the deposit rate remaining at 2.20%. The BoC said economic activity in Canada has been weak and uncertainty about U.S. trade policy persists, while the conflict in the Middle East is ongoing and oil prices remain elevated, but they reiterated their commitment to prevent higher energy prices from becoming persistent inflation.