HIGHLIGHTS OF THE WEEK – Feb 17
United States
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Overseas developments held the market’s attention this week. While a euro zone finance ministers meeting on Greece ended in disarray on Wednesday, signs of compromise helped lift sentiment on Thursday. Ditto for news of a ceasefire agreement in the Ukraine.
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The U.S. economy remains largely unaffected by these overseas events. Net trade will be a drag this year, but the domestic sector should deliver robust economic growth.
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Closer to home, retail sales declined for a second consecutive month. While the poor print does suggest mildly weaker spending momentum at the start of the year, it is no time to count the U.S. consumer out. Savings at the pump are likely to be spent in future months, while solid real income gains and a robust labor market will also provide a lift to spending.
Canada
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Canadian markets enjoyed a week of relative calm, a welcome respite from market jarring moves over the past month. Regional variations in Canada’s economy took centre stage both in a Bank of Canada speech, and in the latest housing market data.
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TD Economics released its latest Canadian Regional Housing Outlook: Trading Spaces which outlines our forecast for moderation in Canada’s housing market, although with significant regional variations.
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Finally, December manufacturing data revealed that other sectors of the economy outside of oil and gas still have some decent momentum heading into 2015.
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) 767-5442
John.Maveety@td.com
