Trading Day for Friday, March 13, 2026
Why It Matters
Geopolitical tension and higher oil prices are reshaping risk sentiment, prompting a defensive shift toward fixed income and international equities, while regulatory obstacles could delay the EV transition in North America.
Key Takeaways
- •Energy markets wobble as Iran‑Hormuz tensions raise oil prices.
- •Canada loses 84,000 jobs, unemployment climbs to 6.7%.
- •Rio Tinto pauses Quebec lithium plant amid soaring construction costs.
- •ETF flows shift toward international equities and fixed‑income assets.
- •BYD and Honda face regulatory hurdles entering North American EV market.
Summary
The Trading Day broadcast highlighted a volatile market environment driven by rising energy prices and geopolitical risk. President Donald Trump’s statement that curbing Iran’s nuclear program outweighs oil‑price concerns underscored the tension in the Strait of Hormuz, while Canada reported its steepest job loss in four years, shedding 84,000 positions and nudging unemployment to 6.7%.
In the corporate arena, Rio Tinto announced a temporary halt to construction of its Nemaska lithium processing plant in Quebec due to surging costs, though it pledged to resume next year. U.S. equity strategist Scott Kroner of Citi warned that prolonged oil‑price pressure could strain the Fed’s easing path, noting a shift in February’s ETF flows toward international equities and fixed‑income products as investors seek safety.
Notable remarks included a retired Air Force general’s warning that keeping the Hormuz strait open may force U.S. military action, and Kroner’s observation that the U.S. market remains a relative safe haven despite higher oil exposure. The segment also explored the electric‑vehicle landscape: BYD’s tentative plans for a wholly owned Canadian plant clash with joint‑venture requirements, while Honda disclosed billions in EV‑related charges and delayed its North‑American rollout.
The confluence of geopolitical strain, softer labor data, and shifting capital allocations suggests investors will favor defensive assets and scrutinize supply‑chain risks in the EV sector. Continued oil‑price volatility could delay Fed rate cuts, while regulatory hurdles for Chinese EV makers may reshape North American market dynamics.
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