This Week’s Economic Highlights – June 7
TD Canada Trust provides a weekly economic highlight report that we choose to share with our clients and those who follow us. This is an easy place to stay current on the broader economic conditions in Canada and the U.S. so that you are better informed to make stronger decisions around your own real estate investments. We are always available to answer any questions or walk through your real estate investment goals for now or in the future.
Full Details of the TD Canada Trust Economic Highlights Here
- Global equity markets were in better spirits this week, helped by hopes of a rate cut amid escalating trade tensions. The S&P/TSX composite followed it its global peers, ending the week higher even as oil prices (WTI) were slightly down.
- Economic data was reassuring, supporting the view that the Canadian economy is emerging from a soft patch. International trade showed improvement as trade deficit continued to narrow.
- Reports from Toronto and Vancouver real estate boards suggest that the national housing market will likely continue to firm in May. After a strong print in April, job growth continued at a decent clip in May with economy adding 28k jobs.
- Trade tensions continued to dominate economic headlines, with U.S.-Mexico taking center stage. It remains unclear if a deal can be reached by Monday. The US-China spat also resurfaced, with signs that it is spreading beyond goods trade.
- Fed Chair Powell noted that the Fed was monitoring trade developments closely, and was ready to “act as appropriate to sustain the expansion”. This appeared to soothe equity markets, which rebounded to a three-week high.
- The May jobs report disappointed expectations, with payrolls up only 75k. Looking through the recent volatility, the hiring trend has slowed but remains decent, averaging 151k in the last three months. The unemployment rate held steady at 3.6% and wage growth, while slowing a touch, held above 3% y/y.