Monday Monitor for May 8th, 2017
The Last Week
Entrepreneurs and business owners pull through to be the major engine of modest job growth for a mixed Canadian April jobs report. This contrasted the stronger U.S. job growth at 211,000 in April above the consensus forecast of 190,000. While each central bank held their interest rate policies in tack with neither an increase in central rates or investment strategies. Read more
The Week Ahead
The real estate market in Canada attracts much debate with its bubbles and ‘flippers.’ This week we will receive an update on residential building permits and housing starts. Remember the tax reporting requirements for principle residence have changed for 2017. Read more
The World At Large
Financial markets reacted very positively to the defeat of the nationalist party, Le Pen in the French election. “We took one of the biggest risk events of the year off the table,” said Tom Hainlin, global investment strategist at Ascent Private Capital Management. “I think people will now be focusing on the fundamentals — which have been good — and the European Central Bank, which continues to be accommodating.” Read More
Monday Monitor for May 5, 2017
The Last month
In February 2017, Canada’s Gross Domestic Product (GDP) reported a flat 0.1% increase. There is no need for concern, according to our partners at National Bank Financial Economic and Strategy Group (NBF). Even with a modest February and March level of overall economic activity, Canada’s economy is on track to meet the 3.8% expected GDP rate from the Bank of Canada (BoC). The Canadian economy is forecasted to be the fastest growing economy of the G7since the second half of 2016. Canada’s growth compares to the more modest estimate of 2.6% GDP growth for the U.S. economy as consumer spending rates declined and savings rates increased.
The week ahead
The first week of May offers an announcement on the U.S. Federal interest rate. Our partners at National Bank Financial expect U.S. rates to remain flat in light of a stalled U.S. GDP but look for future rate hikes in 2017. In Canada, the Labour Market Survey will be conducted. This key employment indicator factors in the total percentage of Canadian residents actively seeking work but currently unemployed is expected to have a modest decline. Finally, it is the time when public companies announce their first quarter earnings. Track your portfolio holdings results with the announcement calendar here.
For more economic details and a discussion on the global economic outlook click here.