HIGHLIGHTS OF THE WEEK – March 8/13
- It was a great week for U.S. equity markets, Reacting to positive economic data, the Dow-Jones reached a new record high, erasing the losses caused in the aftermath of the recession.
- The biggest data release came at the end of the week and it did not disappoint. U.S. payrolls added an additional 236k jobs, well ahead of expectations for 165k.
- Sustaining this pace of job growth is likely to be more difficult as sequestration hits the economy in the months ahead. However, by the second half of the year, with ongoing support from housing activity, job gains in excess of 200k should become the norm.
- The Canadian economy created 50,000 jobs in February; the unemployment rate held steady at 7.0%.
- After a sharp drop in January, housing starts bounced back last month to 180,000. However, the downward trend is likely to continue.
- The international trade deficit narrowed in February, as exports grew faster than imports.
- The Bank of Canada held the overnight rate unchanged at 1.00%, but had a more dovish tone in its communiqué, suggesting lower for longer interest rates.
- The Canadian dollar hit an 8-month low following the Bank of Canada announcement. Despite a rebound following the upbeat data reported on Friday, more weakness is likely in store for the loonie in the near term.
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