HIGHLIGHTS OF THE WEEK – Sept. 9
- It was a short but busy week in the U.S. economic calendar. A string of better-than-expected economic reports lifted the spirits in financial markets, however geopolitical tensions remained a weight on sentiment. Nonetheless, the S&P 500 ended the week slightly in green territory, up 0.9%.
- The most significant and much-anticipated piece of data – Friday’s payrolls report – came in disappointing. The headline rose by 169k in August, landing below markets expectations of 180k.
- This month’s payrolls were meant to be the final piece of the puzzle that would solve the timing of the Fed’s tapering. However, soft employment gains only muddied the waters. While the data did not take September tapering off the table, it does suggest that the Fed will use a lighter touch.
- In its interest rate announcement, the Bank of Canada held the overnight at 1.00% and reiterated its forward looking language. The Bank acknowledged that the rotation in economic growth drivers has not been as quick as many had hoped – a theme that was reinforced by data releases this week.
- Canadian real exports fell 1.2% in July, putting net trade on track to detract from growth for a second consecutive quarter in Q3. Meanwhile, housing and consumer spending continued to heat up in the quarter.
- Employment rose 60,000 in August, but job creation remains soft on a three month moving average. The Canadian unemployment rate has been stuck in a 7.1% to 7.2% since December of 2012.
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