HIGHLIGHTS OF THE WEEK – March 2
• Global markets see-sawed in recent days but ended the week on a relatively upbeat note as the oil price rally boosted equities and risk sentiment.
• Global sentiment is also being shored up by Beijing, with Chinese authorities arguing that the government has plenty of room to stimulate growth should it falter. Moreover, the central bank chief has also been thrust into the spotlight, attempting to refocus investors on what he suggests are solid economic fundamentals.
• U.S. data increasingly support the notion that the economy should be able to withstand the global slowdown. The economy grew more than initially reported in 2015Q4 while growth in the current quarter is also holding up, with monthly data pointing to a strong performance in consumption and residential investment.
• A better mood on markets, and slightly higher oil prices provided a bit of loft to the loonie, which traded near 74 cents U.S. on Friday, a level not seen since early December.
• Unfortunately, the economic data may be less cooperative next week, where we expect the Q4 GDP data to show no growth for the Canadian economy. Business investment is expected to be a weak spot in the report, and to remain one for a couple more quarters, as Canadian corporations struggle with a worsening bottom line.
• We are now in the thick of budget season, and governments at all levels are likely to struggle with their bottom lines. Ontario continued to chip away at its deficit, while the upcoming Federal budget on March 22nd should show deficits getting larger, not smaller.
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