HEADLINES
Manufacturing Sector Activity Subdued in March With PMI Slipping to 50
Activity among Canadian manufacturers took a step back last month, with dips in new orders and production along with some signs supply chains have been disrupted by the Iran war, data showed.
The S&P Global Canada manufacturing purchasing managers index slipped in March to 50, putting the measure on the threshold between reflecting expansion and contraction. It comes after the index rose in February to 51, a second straight month of modest growth after a year in contraction territory for an industry that has been hit hard by trade policy uncertainty and tariffs.
"The conflict in the Middle East, which had a relatively muted impact on the Canadian manufacturing sector compared to regions like Europe in March, has understandably raised the level of uncertainty in the outlook, " said Paul Smith, economics director at S&P Global Market Intelligence.
Groupe Dynamite Refocuses Expansion Plans as Sales Surge
Canada's Group Dynamite is rebalancing its store network toward busier shopping areas, adding new locations in stronger markets as its current store portfolio continues to outpace expectations.
The Canadian fashion retailer plans to open 19 to 21 stores in 2026, focusing its expansion on denser, more affluent neighbourhoods and malls where higher foot traffic drives stronger turnover. "As we keep opening higher-quality stores, the numbers just get better," Chief Executive Andrew Lutfy said on a call to investors Wednesday.
Shares settled 1.3% lower at C$75.61.
The new stores will be under its two banners, Garage and Dynamite, joining the more than 300 stores the company already operates in Canada, the U.S. and now in the U.K., where it has just opened its first locations.
Group Dynamite Sees Higher Costs from War in Middle East
Pandora Opens Online Distribution Center in Canada to Avoid U.S. Tariffs
Danish jeweler Pandora said it opened a new online distribution center in Canada, aiming to reduce the company's exposure to President Trump's tariffs.
The group said that online jewelry orders destined for the Canadian market will no longer need to pass through U.S. customs.
The opening of the new facility falls within Pandora's plan to shift its distribution network, which was unveiled last year following Trump's move to impose higher tariffs on imported goods to the U.S.
The company said at the time that it aimed to skip the U.S. for shipments bound for Canada and Latin America, allowing it to reduce the potential impact of the duties.
ShaMaran Petroleum Reports Explosion at Sarsang Facility in Iraq
ShaMaran Petroleum reported an explosion at a storage facility in Iraq's Sarang field.
The Canadian oil and gas company said it was informed by HKN Energy, the operator of the Sarang block in the Kurdistan region, that an explosion occurred earlier in the day at one of the storage facilities in the field. There have been no injuries reported and all personnel have been accounted for, it said.
Operations at Sarang, where ShaMaran has a 15% working interest, remain suspended and production at the Atrush Block in Iraq is still shut-in as a precaution, the company said. ShaMaran indirectly holds a 50% working interest in the Atrush block.
Tilray Brands Third-Quarter Loss Narrows as Cannabis Sales Rise
Tilray Brands posted a narrowed third-quarter loss as stronger cannabis sales lifted revenue and helped offset weakness in its beverage business.
Shares lost 4.6% to settle at C$8.56.
For the three months ended Feb. 28, the cannabis-focused consumer products company on Wednesday posted a narrowed loss of $25.2 million, or 24 cents a share, compared with a loss of $793.5 million, or $8.69 a share, in the comparable quarter a year ago.
Adjusted earnings were came to 2 cents a share. According to FactSet, analysts were expecting a loss of 14 cents a share.
Net revenue rose 11% to $206.7 million, above analysts forecasts of $201.4 million.
TALKING POINT
Bank of Canada Faces Dilemma in Response to War-Fueled Energy-Price Surge, Minutes Say
By Paul Vieira
OTTAWA-Senior Bank of Canada officials said they face difficult decisions in the coming months about supporting a sputtering economy while keeping inflation low and stable amid a surge in energy prices, according to minutes of their deliberations published Wednesday.
The seven members of the central bank's governing council, led by Gov. Tiff Macklem, agreed they could be patient in deciding how to respond to the economic fallout from the war in Iran. Prior to the conflict, data indicated weakness in the labor market and growth below the economy's potential.
"They agreed that they had some flexibility because inflation was close to target and core [inflation] measures suggested limited pressures," according to the minutes. Members said "they could therefore take some time to see how the war in Iran evolved and what it meant for the outlook."
The minutes covered the governing council's deliberations that started March 13 leading up to the March 18 policy decision, at which time officials left its benchmark interest rate unchanged at 2.25%. The central bank warned of painful economic repercussions from a prolonged and wider war in the Middle East.
The minutes, or summary of deliberations, provide some additional context behind the Bank of Canada's decision on March 18. Prior to last month's policy announcement, traders on the overnight-index swap market had priced in one quarter-point rate increase before the end of 2026. At present, the OIS market points to an increase in Canadian rates of at least a half-percentage point, reflecting elevated risks of higher inflation.
Gas prices in Canada are nearly one-third higher compared with a month ago, according to data collected by the Canadian Automobile Association.
The Bank of Canada sets interest rates to achieve and maintain 2% inflation, and, prior to the conflict in Iran, data indicated that increases in headline and core prices were decelerating. According to the minutes, senior officials agreed the jump in energy prices would push headline inflation above the 2% target.
"This presents a difficult tradeoff for monetary policy," the minutes said. "On the one hand, raising the policy rate to bring down inflation could weaken the economy further. On the other hand, lowering rates to support the economy could risk pushing inflation even higher."
Members of the governing council, which is responsible for rate-setting policy, said one of two scenarios are likely to unfold. First, that higher gasoline prices, combined with still-elevated prices for food, could push up inflation expectations among households and businesses.
"Typically, higher inflation expectations make it easier for businesses to pass along cost increases," the minutes said.
Yet, members acknowledged that any pass through of higher energy costs to other goods and services could be limited, given underlying economic weakness. In its March 18 rate decision, the central bank said the economy was having difficulty absorbing excess slack. Data this week indicated the economy is on track for modest growth in the first quarter, although at a pace below its potential.
In the end, the members agreed they stood ready to "to ensure that price increases did not spread to other goods and services and become persistent inflation," according to the minutes. Members "would need to rely on judgement more heavily than usual and take a risk management approach to monetary policy."
Write to Paul Vieira at [paul.vieira@wsj.com]
Expected Major Events for Thursday
08:00/ITA: Feb Retail Sales
11:30/US: Mar Challenger Job-Cut Report
12:30/CAN: Feb International merchandise trade
12:30/US: Feb U.S. International Trade in Goods & Services
12:30/US: 03/28 Unemployment Insurance Weekly Claims Report - Initial Claims
12:30/US: U.S. Weekly Export Sales
13:00/RUS: Weekly International Reserves
14:30/US: 03/27 EIA Weekly Natural Gas Storage Report
20:30/US: Foreign Central Bank Holdings
20:30/US: Federal Discount Window Borrowings
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Thursday
ALT5 Sigma Corp $(ALTS)$ is expected to report for 4Q.
Actuate Therapeutics Inc (ACTU) is expected to report for 4Q.
Acuity Inc $(AYI)$ is expected to report $3.13 for 2Q.
Airsculpt Technologies Inc (AIRS) is expected to report $-0.04 for 4Q.
AngioDynamics Inc $(ANGO)$ is expected to report $-0.22 for 3Q.
Beasley Broadcast Group Inc $(BBGI)$ is expected to report for 4Q.
CDT Equity Inc (CDT) is expected to report for 4Q.
Celularity Inc $(CELU)$ is expected to report for 4Q.
Clearside Biomedical Inc $(CLSDQ)$ is expected to report for 4Q.
Cumulus Media Inc (CMLS) is expected to report for 4Q.
Dynatronics Corp (DYNT) is expected to report for 2Q.
Lindsay Corp (LNN) is expected to report $1.70 for 2Q.
ModivCare Inc $(MODVQ)$ is expected to report $-1.21 for 4Q.
NextNRG Inc $(NXXT)$ is expected to report for 4Q.
Nu Ride Inc (NRDE) is expected to report for 4Q.
Old Market Capital Corp (OMCC) is expected to report for 3Q.
Precipio Inc $(PRPO)$ is expected to report for 4Q.
Smith-Midland Corp $(SMID)$ is expected to report for 4Q.
Sotherly Hotels Inc $(SOHO)$ is expected to report for 4Q.
Tofutti Brands Inc (TOFB) is expected to report for 4Q.
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(END) Dow Jones Newswires
April 01, 2026 16:30 ET (20:30 GMT)
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