In February 2026, global markets were shaped by rising geopolitical tensions, shifting trade policies, and mixed economic signals. A major escalation occurred when the U.S. and Israel attacked Iran, prompting retaliation and raising concerns about oil supply disruptions, particularly through the Strait of Hormuz.
Despite this uncertainty, global equity markets edged higher, supported by strong corporate earnings, though volatility remained. Canada’s economy contracted slightly in late 2025 due to declining business inventories, but consumer spending and exports showed resilience, and inflation began easing.
In the U.S., new tariffs were introduced after a Supreme Court ruling blocked broader measures, reigniting trade uncertainty. However, Canada was largely shielded due to existing trade agreements. Meanwhile, the U.S. labour market showed short-term strength with job growth and a slight drop in unemployment, though future stability remains uncertain.
Central banks in Canada, the U.S., and Europe largely held interest rates steady, reflecting caution amid economic and political unpredictability.
Market performance was mixed: Canadian equities reached record highs, U.S. equities declined slightly, bond yields fell, and commodity prices—especially oil and gold—rose.
To read the full update, including data tables and detailed commentary, visit the full article on Canada Life: Monthly Market Update – February 2026 (opens in a new tab).
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