Monday Monitor for May 15th, 2017
Financial Markets Last Week
With a look at the year-to-date (Y-T-D) comparisons of the major financial markets, the divide between global and international market expectations with their underlying sectors or industries emerges for the first half of 2017. Canada’s main exchange the S&P/TSX60 Composite Index and its two main sectors of energy and financials are challenged by supply and demand forces. On Friday May 12th, financials stocks were the biggest laggards. Moody’s downgraded six Canadian banks earlier in the week partially due to the concerns over mortgage lender Home Capital. The potential ‘cooling off’ of Canadian real estate ‘hotspots’ is good news. Despite the best efforts of OPEC, global oil supply is experiencing the opposite market forces of Canadian real estate with softening prices due to excess supply. Enjoy the in-depth Monday Monitor review from our partners at National Bank Financial .
The week ahead
The conversation about Canadian real estate markets continues. Enjoy the detailed analysis by our partners at National Bank Financial (NBF) for our Monday Monitor. The NBF economic analysis includes the Teranet–National Bank National Composite House Price IndexTM which rose 1.2% in April. That progression was supported by rising prices in four of the 11 metropolitan markets surveyed: Toronto (+2.6%), Hamilton (+2.1%), Victoria (+1.5%) and Halifax (+1.4%). With close economic links between real estate, oil and inflation, the week ahead highlight in Canada will be the release of April’s consumer price index. “Higher than normal increases in gasoline prices pushed up headline CPI during the month. As a result, the annual inflation rate is expected to rise two ticks to 1.8%”