TD/ Canada Trust Economic Highlights – July 31

Highlights of the Week – July 31

United States
• It was a good start to the week for U.S. equities, with stock prices boosted by another round of strong earnings
reports and a weakening in the US dollar to its lowest level in over a year. However, these gains were offset by dips in health care and tech stocks by Friday afternoon.
• As expected, the FOMC voted unanimously to leave its benchmark rate unchanged, while signalling that
the balance sheet normalization process will likely begin in October.
• The American economy accelerated in Q2, returning to a slack-absorbing pace of 2.6% growth, led by
strength in consumption and private fixed investment.

• The Canadian dollar hit a 2-year high of 80 US cents this week, marking a 10% gain since May. Gains were driven by robust economic data, expectations for further Bank of Canada rate hikes and rising oil prices.
• The Canadian economy expanded by 0.6% in May, with growth fairly broad-based across industries. This puts tracking for the second quarter at 3.8%.
• The WTI oil benchmark rose 7.5% from last week’s close, to over US$49 per barrel, driven by another decline in US inventory levels and a pledge from Saudi Arabia to reduce exports.

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Adam Mills, Broker of Record
Royal LePage Team Realty Adam Mills, Brokerage