TD Canada Trust provides a weekly economic highlight report that we choose to share with our clients and those who follow us. This is an easy place to stay current on the broader economic conditions in Canada and the U.S. so that you are better informed to make stronger decisions around your own real estate investments. We are always available to answer any questions or walk through your real estate investment goals for now or in the future.
- The TSX and Canadian dollar traded sideways this week, hanging onto recent gains. Still, the WCS heavy oil price pushed higher and is up markedly compared to its November trough – a good news story for the beleaguered oil sector
- Economic data released this week reinforced the slowing growth narrative, with wholesale activity, manufacturing sales and retail spending falling in November. The disappointing reports also caused us to shave our Q4 growth forecast. This softer economic backdrop should keep the Bank of Canada on hold at least until July.
- Global equity markets are up on the week, despite some negative economic news, and continued dysfunction in Washington. The ECB characterized the economic risks as to the downside, and will be more cautious removing stimulus.
- Amidst the U.S. partial government shutdown there was little data to unpack. Home sales showed a sour end to 2018 for real estate. Negotiations in Congress continue, but there is no clear end to the impasse at time of writing.
- Next week we get some key events – an FOMC rate decision with a press conference, and a payrolls report. Furloughed federal workers are expected to lift the unemployment rate, but should not affect the payrolls tally.