This week is crucial for Canadian stock market investors, as both the U.S. Federal Reserve and the Bank of Canada will make interest rate decisions on September 16 and 17. The macroeconomic statistics push for an interest rate cut as inflation and jobless claims surge.
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Canada’s massive macro news
Canada’s 7.1% unemployment rate in August 2025 was the highest since May 2016 after excluding the pandemic years of 2020 and 2021, according to Statistics Canada. The Canadian economy shed a net of 65,500 jobs in August. Its real gross domestic product (GDP) declined 0.1% in June as strength in retail and real estate was offset by weakness in manufacturing. What does this signify?
Businesses are slashing jobs amidst tariff uncertainty, while consumers are spending more by taking loans. The Bank of Canada could consider reducing interest rates to give businesses some relief amid the weak business environment and promote further consumption.
Stock market investors: Here’s the news to watch out for
Prime Minister Mark Carney is looking to generate jobs by announcing fast-track approval for five major projects. These projects show a change in the country’s trade strategy in response to tariffs.
LNG export opportunity
The first two projects selected for fast-track approval demonstrate Canada’s commitment to accelerating its liquefied natural gas (LNG) export opportunities to the world:
- The double production of the LNG Canada plant in the western province of British Columbia; and
- The expansion of Montreal’s terminal container port.
Both are on the two extreme ends of Canada and hold strategic importance for the nation’s entry into global trade. These investments suggest that Canada is diversifying trade beyond the United States.
A strategic benefit will be for the two companies. TC Pipeline’s Coastal GasLink pipeline supplies gas to the LNG plant in British Columbia, creating an opportunity for higher transmission volumes. Descartes Systems could be another strategic beneficiary as it helps suppliers execute the transmission of goods domestically and internationally. It helped companies export LNG via water route to other countries.
Short-term stock market opportunity
The third project slated for fast-track approval is a small modular nuclear reactor in Ontario. A direct benefit will be for construction companies that will execute the construction. Bird Construction (TSX:BDT) has been awarded projects for Ontario Power Generation, supporting ongoing nuclear operations and early site development on the Woodfibre LNG project in British Columbia.
The company provides construction and maintenance services for industrial buildings and infrastructure markets. The stock was hit in the second quarter as several clients delayed the start of specific projects amidst ongoing economic uncertainty. This led to a slight decline in revenue and net income. However, the company saw strong order wins worth $1.2 billion, hinting that recovery will be stronger.
Opportunity for copper stocks
The next two projects are around increasing the production of copper, a key metal in clean energy, advanced manufacturing, and modern infrastructure:
- The expansion of the Newmont-operated Red Chris gold and copper mine in northwestern British Columbia; and
- The McIlvenna Bay Foran Copper Mine Project in East-Central Saskatchewan is expected to be the first net-zero copper project in Canada. It will create 400 jobs in Saskatchewan and Quebec.
This creates an opportunity for copper stocks to flourish in the medium term.
