TORONTO – Canada’s main stock index saw small gains to finish Monday’s trading session, while U.S. markets were mixed as investors digested high-level political meetings among U.S., Ukrainian and European leaders.
Kathryn Del Greco, a senior investment adviser with TD Wealth, said it was a “fairly calm” day in the markets.
“I think there’s quite a lot going on on the political stage today that’s getting a considerable amount of attention, certainly with the meetings with Trump and Zelenskyy and the European leaders. Obviously a lot is riding on these discussions. So I think people are very focused on how that is going,” she said.
Ukrainian President Volodymyr Zelenskyy and U.S. President Donald Trump expressed hope that Monday’s critical talks at the White House could lead to trilateral talks with Russian President Vladimir Putin to bring an end to Russia’s war on Ukraine.
Monday’s hastily assembled meeting comes after Trump met with Putin and has said that the onus is now on Zelenskyy to agree to concessions that he said could end the war.
“Certainly, if there are any advancements as a result of these conversations and if there is a peace deal that can be arranged I think the markets would be quite relieved to see that and it could set us up quite nicely for a positive environment should that develop over the course of the next few days,” Del Greco said.
She added that it is too early to gauge if anything will come from the meetings, which is why the market is behaving “very cautiously.”
Overall, Del Greco said markets have been digesting a lot of uncertainty recently.
“I think the market’s becoming quite adept at trying not to overreact in the short run to any headline stories as best as it possibly can,” she said.
The S&P/TSX composite index was 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 index was flat at 6,449.15, while the Nasdaq composite was up 6.80 points at 21,629.77.
Going forward, Del Greco noted that markets will be focused on U.S. Federal Reserve chair Jerome Powell’s economic outlook, expected to be delivered at the Jackson Hole symposium on Friday.
“I think the market will be hanging on every word he says for any indication. Now, he’s proven to be quite adept at keeping his cards close to his chest, but nonetheless, the market will be anticipating every word he says,” she said.
On the TSX, shares of Air Canada finished nearly three per cent lower on Monday after the airline announced it is suspending its third-quarter and full-year 2025 guidance. The move comes amid a labour dispute between Air Canada and its flight attendants, who remain on strike despite a back-to-work order by the Canada Industrial Relations Board.
“The fact that that’s still ongoing and with no immediate end in sight, and then Air Canada pulling its guidance, leads us to believe that maybe this is going to be a little bit more drawn out than initially thought,” Del Greco said.
Depending on certain factors, she noted the strike could impact the company on a longer-term basis.
“I think we’re going to have to wait and see, but certainly if air travel is down, depending on to what degree and how long this lasts, it would have an impact on their earnings,” she said.
The Canadian dollar traded for 72.42 cents US compared with 72.43 cents US on Friday.
The October crude oil contract was up 72 cents US at US$62.70 per barrel. The December gold contract was down US$4.60 at US$3,378 an ounce.
This report by The Canadian Press was first published Aug. 18, 2025.
— With files from The Associated Press
Companies in this story: (TSX:GSPTSE, TSX:CADUSD, TSX: AC)
