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RBC Capital Markets Highlights Top Canadian Utility Picks Amid Market Stability
Utilities · Electric Utilities · globe_inside_market · 2026-08-21
RBC analyst Maurice Choy identifies key utility stocks while Scotiabank evaluates the impact of Canada's cooling housing market on major banking performance.
What Happened
Utility Sector Outlook: RBC Capital Markets analyst Maurice Choy notes that Canadian regulated utilities are performing reliably, successfully managing stakeholder priorities and data center-related growth. While the sector remains at elevated valuations, RBC highlights ATCO, Emera, Fortis, AltaGas, and Brookfield Infrastructure as top investment picks for the coming months.
Canadian Housing Market: Scotiabank analyst Mike Rizvanovic observes a cooling domestic residential market characterized by lower sales volumes and rising inventory levels. Despite these headwinds, National Bank is expected to outperform peers due to its specific exposure to the more resilient Quebec housing market.
Macroeconomic Policy Concerns: BofA strategist Michael Hartnett critiques current U.S. economic policy, citing failures to meet growth, deficit, and oil production targets. The report suggests that policy interventions, including potential quasi-QE measures, are aimed at stabilizing bond yields but may signal broader risks for cyclical sectors and AI-related assets.
Market Performance Trends: Recent market activity shows a notable rebound in gold and cryptocurrency, with gold prices exceeding $4,600 per ounce and Bitcoin surpassing $77,800. These movements reflect ongoing investor interest in alternative assets amid broader uncertainty regarding global monetary policy and government fiscal credibility.