ADAM MILLS REALTY TEAM

TD/ Canada Trust Economic Highlights – August 14

Highlights of the Week – August 14

United States
• Markets this week have been largely driven by corporate earnings and political events, with tensions on the Korean Peninsula escalating to the point where markets can no longer ignore them.
• Inflation strengthened in the Eurozone, with prices growing by 0.13% in July and the year-over-year measure accelerating to 1.2% with strength particularly apparent in Germany and Spain.
• U.S. inflation surprised to the downside once again, with prices growing by 0.1% in July – or half the expected pace. Despite the soft CPI print and PPI figures, we expect inflation will strengthen somewhat in the coming months.

Canada
• Canadian markets fell late in the week alongside their global counterparts as geopolitical tensions ratcheted up on the back of heated U.S.-North Korean rhetoric. Domestically, housing starts remained on an upward trend in July, but current headwinds suggest a slowing pace as the year progresses.
• NAFTA renegotiations are set to begin this Wednesday. While some areas, such as dispute resolution, are likely to prove challenging, several opportunities exist for improving and modernizing the agreement.
• The timing of Mexican presidential elections argue for a relatively short negotiating process. Trade negotiations are never simple affairs, but using TPP as a template for services trade liberalization may help accelerate the process.

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
[email protected]