HIGHLIGHTS OF THE WEEK – May 27
United States
- April existing home sales rose to 4.97 million units (annualized) – its highest level in over three years. As of April, median home prices were up 11% on the year, making it the fifth consecutive month that home prices have posted double digit year-over-year gains.
- In his semi-annual testimony to the Joint Economic Committee, Chairman Bernanke acknowledged the recent improvements in the U.S. economy, but warned that the Fed would be cautious in how quickly it tapered its purchases for fear of threatening the recovery.
- The Nikkei 225 fell by 7.3% on Thursday in response to weaker Chinese manufacturing data. The decline marks the largest single-day fall in the Nikkei since the 2011 earthquake.
Canada
- This week saw the release of the retail trade report for March with volumes up a healthy 8% (annualized) for the month as prices declined, leaving the total value of sales flat. This points to a respectable turnout for consumer spending in the first quarter of 2013 at just over 2%.
- Next week will see the release of the Quarterly National Accounts. By all accounts, Canada’s economy managed to shake off its extremely subdued performance during the second half of last year with a more respectable real GDP expansion of around 2.5% (annualized) in the January-March period – buoyed by a better trade performance and on par with the expansion chalked up south of the border.
- The Bank of Canada will hold its interest rate announcement on Wednesday. Expect the Bank of Canada to remain on the sidelines and the leave the benchmark overnight rate on hold at 1.00% as inflation remains a non-issue.
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
