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.

Economic Outlook: The World Is Turning a Corner

For our clients who enjoy a global view of economic trends, we take a deep dive into the current financial conditions with our partners at National Bank Financial to determine world economics is turning a corner. Various economic indicators most notably strong U.S. and Canadian ‘Job numbers’ in March 2017 beat expectations on both sides of the border. The robust employment statistics endorse the forward looking equity markets with the Dow Jones Industrial Average (DJIA)* clinching a historic benchmark of 20,000 in late January 2017 only to quickly test 21,000 on March 1st, 2017. Many investors are asking what does this mean?

“After a disappointing 2016, the global economy seems to have turned the corner. A resurgence in economic activity in the advanced world, led by the U.S., is being complemented by an apparent rebound in China which is lifting emerging markets. That said, major uncertainties threaten to derail global growth including increased trade protectionism, elevated debt levels and political instability in places such as Europe.”

Enjoy the detailed discussion of current financial conditions in the “Monthly Economic Monitor” including the rebound of the Canadian Energy sector from our partners at National Bank Financial Markets, A division of National Bank of Canada.

Monthly-economic-monitor March 2017

*The DJIA is an equity index that is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange (NYSE) and the NASDAQ. The DJIA was invented by Charles Dow back in 1896. It includes Apple to Walmart today.