HIGHLIGHTS OF THE WEEK – April 1/13
- It was another good week for the U.S. stock market. Reacting to a resolution of the Cypriot banking crisis and to positive U.S. economic data, both Dow Jones and the S&P 500 reached a new record high.
- Stock markets are soaring, home prices are rising and the economy is adding jobs, but consumer confidence took a hit in March as the reality of higher payroll taxes and smaller paychecks sank in.
- Strengthening fundamentals should eventually brighten consumers moods, but with sequestration beginning to bite in April, fiscal policy will continue to cloud the near term outlook.
- Canadian economic momentum appears to be picking up in 2013. Real GDP advanced 0.2% in January, broadly in line with our view that economic growth accelerated in the first quarter of this year.
- Consumer prices rose sharply in February, led by gasoline, food and auto prices. Still, on an annual basis, headline inflation is running at 1.2%, while core inflation is running at just 1.4% – at the lower end of the Bank of Canada’s 1% to 3% target range.
- While the process has been slow and painful given international economic headwinds, the transition back to export-led growth appears to be a key theme unfolding in the first quarter of this year, supported by a revival in U.S. demand.
For further information, please contact:
John Maveety Manager, Residential Mortgages – Greater Ottawa Area
TD Canada Trust
T: (613) 371-1984 F: (888) 899-1984 P: (866) 767-5446