TD/ Canada Trust Economic Highlights – Aug 12


United States

  • Soft risk sentiment throughout much of the week was driven largely by escalating tensions in the Middle East and retaliatory import bans by Russia on a host of countries. At the time of writing, U.S. equities were 0.9% lower on the week, while the 10-year yield was down 13bps.
  • The U.S trade deficit unexpectedly narrowed to $41.5B in June, as exports (+0.1%) posted a modest gain while imports (-1.2%) slumped. The strong decline in imports was largely a result of a pullback in both automotive (-3.8%) and consumer goods (-2.7%).
  • The July reading of the ISM Non-Manufacturing index surprised to the upside, rising by 2.7 points and reaching a new cyclical high of 58.7. The details of the report proved to be even more encouraging, with all four major sub-components recording gains on the month.


  • Equity markets had another down week in Canada as geopolitical tensions continued to drive increased risk aversion. The loonie depreciated further as a result.
  • A weak jobs report for July was also disappointing, continuing the very soft job growth trend which has been in place for a year now.
  • Fortunately, the June international trade report provided a bit more encouraging news about Canada’s economy, as exports posted another healthy

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