HIGHLIGHTS OF THE WEEK – July 15
- Solid week for global markets as the Fed message that “tapering is not tightening” hits home after the Chairman’s remarks on Wednesday. Domestic equities hit fresh highs, while bonds recover slightly. Global equities rally as risk sentiment rises.
- Wholesale inventories for May surprise to the downside, while April’s are revised lower, taking a chunk out of setting second-quarter growth – now tracking barely above 1% annualized.
- June import prices fall, surprising to the downside, as a stronger dollar manifests itself.
- Initial jobless claims register higher, but the 4-week moving average still within a healthy range.
- This week, areas of Southern Alberta and Ontario dealt with the aftermath of downpour and widespread flooding. The worst of the episodes appears to be in the rear view mirror – the emergency status in High River, Alberta was lifted yesterday and virtually all residents in Southern Ontario have regained power. Rebuilding, renewal and healing remain on tap.
- On the economic front, there were two major data releases on the Canadian calendar. Canadian new homebuilding stabilized at 200K units on a seasonally-adjusted, annualized basis in May. On a six-month basis, new home starts are averaging about 184K.
- The Bank of Canada also issued its Summer 2013 Business Outlook Survey this week. Canadian firms remain quite cautious when it comes to future sales growth prospects and investment intentions. They seem to be waiting for the economic outlook to improve which looks to be in the cards in the second half of the year and into 2014.
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