TD / Canada Trust Economic Highlights – April 14


United States

  • Minutes from the March 18/19th FOMC meeting appear more dovish, providing support for equities. Still, the markets finish the week in red due to heavy selloff in tech and bio-tech sectors.
  • International equities further pressured by weak trade and inflation data out of China, throwing into question the magnitude of the economic slowdown.
  • European data were somewhat more upbeat with industrial production increasing broadly, but growthremains slow and uneven.
  • Greece returns to the markets in a €3 billion 5-year bond offering which is snapped up by yield-hungry investors.


  • Shockwaves were sent by the sudden and track loss of former Finance Minister Jim Flaherty, who was a key architect of Canada’s economic outperformance in recent years.
  • Housing starts fell to 156,000 annualized units in March, down from 190,000 in the month prior. On a three-month moving average (175,000 units), housing starts have moved more in line with a pace of construction that is consistent with both our forecast for housing starts this year, and underlying economic fundamentals (like job gains and population growth).
  • In the Bank of Canada outlook survey released this week, businesses pointed to a depreciation in the Canadian dollar and improving economic conditions in the U.S., as key reasons for improved sentiment in the first three months of this year.

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