HIGHLIGHTS OF THE WEEK – April 25

United States
• Investor sentiment remained relatively upbeat this week on constructive economic data, positive earnings
reports, and hopes for near-term pro-growth policies.
• Still, safe-haven assets remained in demand, supported by rising geopolitical tensions and anxiety over
the first round of the French presidential election this Sunday.
• Overall, economic data has been coming in relatively healthy, both in the U.S. and other advanced economies,
but the dichotomy between soft and hard data is hard to miss. This is particularly the case for the
U.S. where survey data surged while hard data suggest that economic growth largely fizzled out in the
first quarter. Having said that, some convergence appears to be in the offing.

Canada
• The Canadian housing market made headlines yet again this week with another strong gain in both home
prices and sales in March, mostly driven by hot conditions in the Greater Golden Horseshoe Area.
• Interest rates are not going to be the instrument to cool housing activity. The consumer price report this
week showed a dip in inflation in March, supporting the view that the central bank will be on hold at least
until next year, despite a pick-up in economic activity in recent months.
• Rather, the Ontario government has stepped in with a pack of 16 policy measures aimed at cooling demand,
tackling the supply shortage and promoting affordability. The biggest of the measures include a
15% nonresident tax and the expansion of rent control to all rental units. Combined, these two measures
are likely to take some steam out of sales and prices in the near-term.

For further information, please contact:

John Maveety Manager, Residential Mortgages – Greater Ottawa Area TD Canada Trust
T: (613) 371-1984 F: (888) 899-1984 P: (866) 767-5446
John.Maveety@td.com