Monday Monitor May 15th, 2017 “CPI Numbers for Canada”

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%”

Enjoy more economic details and a discussion on the global economic outlook click, here.

Monday Monitor May 8th 2017: “Housing Reports Cool in April”

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