HIGHLIGHTS OF THE WEEK – March 27
United States
• Stock markets inched lower this week as odds increase that the promise of regulatory reforms and tax
cuts will be delayed.
• Normally falling stocks, dollar, oil, and Treasury yields would suggest concern about the health of the
U.S. economy. However, the data this week remained supportive of an expansion in the U.S. and global
economies in the first half of this year.
• Later today the U.S. congress will vote on a bill to amend the Affordable Care Act (ACA) that is likely
to have market implications. If the bill passes, it moves onto the Senate, but if today’s vote fails, future
amendments to the ACA could be in doubt.
Canada
• The big-ticket economic attention-grabber this week was the federal government’s 2017 budget. The
budget was largely a stay-the-course type, with the federal government accepting larger deficits over the
medium-term to push its spending agenda along.
• Budget aside, the economic data this week highlighted that the economy may outperform near-term
expectations, with retail sales roaring back from a disappointing December reading. Motor vehicle and
parts remain the biggest driver of retail spending, highlighting that consumer confidence remains strong
in Canada. Having said that, inflation readings were soft, suggesting the Bank of Canada isn’t likely to
move anytime soon.
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]
