2025 Q3 Economic and Market Commentary

Key Highlights:

  • In the third quarter of 2025, markets focused on the positives: stocks rose as investors looked to the potential of artificial intelligence (AI) and US economic resilience, rather than tariff uncertainty.
  • Canadian stocks had an especially strong quarter as gold prices rose to record highs.
  • Canadian bonds also performed well as short-term interest rates declined in anticipation of interest rate cuts by the Bank of Canada (BoC).
  • However, Canada’s economy showed some weakness, as manufacturing and exports declined due to tariffs, and unemployment rose.
  • Looking ahead, trade uncertainty remains high, as the latest round of trade negotiations with the US was paused in late October.

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As always, if you have questions or want to review your portfolio, please contact your Encasa advisor.