Universe Bond C$). Canadian Equities. (S&P/TSX Composite C$). 0.47 -0.06 7.26 12.99 16,020. US Equities. (S&P 500 US$). 0.29 0.35 17.50 26.42 2,588 ... contractions. The mining, quarrying and oil and gas extraction sectors also declined. Industry experts were expecting an increase of 0.1% for the month. This news is ...
Weekly Economic Headlines Unexpected contraction reinforces Bank of Canada’s cautious tone. Canada’s GDP contracted slightly in the month of August, marking the first pullback since October 2016. Statistics Canada cited a decline in the manufacturing sector due to planned maintenance shutdowns as one of the main reasons for the contractions. The mining, quarrying and oil and gas extraction sectors also declined. Industry experts were expecting an increase of 0.1% for the month. This news is being viewed by economists as reinforcement to Bank of Canada’s wait-and-see approach for its next rate decision.
Bank of England hikes rates for first time in a decade. Mark Carney, Governor of the Bank of England (BoE), raised interest rates for the first time in ten years, from 0.25% to 0.50%. Although rates are still near historical lows, and with uncertainty surrounding the Brexit negotiations, the BoE felt that the recent increase in inflation warranted raising rates, but not too much as to cause harm to consumers. Analysts do not believe that businesses and households will be impacted too much as rates are still very low, while rising prices due to a weaker pound are expected to fade over the next few months.
Jerome Powell to be next Fed Chair. U.S. President Donald Trump announced that he has selected Federal Reserve (Fed) Governor Jerome Powell to be the next Chair of the Fed. Powell is considered to be a policy “centrist” who is expected to continue Janet Yellen’s cautious approach to policy. He will be the first Fed Chair in 40 years to not have a PhD in Economics, but he has had a long and successful career in investment banking and private equity, and has already served as a Fed governor for five years. Powell needs to win the Senate’s approval prior to beginning the role.
China’s property market leads the globe. The property market in the mainland of China is making investors and owners richer than anywhere else on the planet. The market has been so hot and frenzied that the government has stepped in to try to cool the market and reduce speculation. Measures have included tightening loan approvals. The housing boom is also making the country’s richest developers even richer, adding over US$44 billion to the net worth of China’s seven largest property tycoons.
INDEX†
OCTOBER 27 - NOVEMBER 3, 2017
Week
Change (%) MTD YTD
1 yr
Index Level
Treasury Bill (FTSE TMX Canada 60 Day T-Bill C$)
0.02
0.00
0.50
0.58
160
Bonds (FTSE TMX Canada Universe Bond C$)
0.52
0.17
2.32
-0.24
1,035
Canadian Equities (S&P/TSX Composite C$)
0.47
-0.06
7.26
12.99
16,020
US Equities (S&P 500 US$)
0.29
0.35
17.50
26.42
2,588
Global Equities (MSCI World US$)
0.56
0.23
19.29
25.77
2,045
Emerging Markets (MSCI EM US$)
1.46
-0.24
33.45
30.60
1,126
European Equities (MSCI Europe €)
0.67
-0.16
12.47
23.15
133
Change (%) MTD YTD
1 yr
Exchange Rate
CURRENCIES†
Week
C$/US
0.35
0.80
5.30
4.97
0.78
C$/Euro
0.36
0.90
-4.54
0.42
0.68
C$/Pound
0.76
2.11
-0.60
0.02
0.60
Change (%) MTD YTD
1 yr
COMMODITIES ($US)†
Week
WTI Crude Oil ($/Barrel)
3.23
2.47
-2.49
12.18
55.64
London Gold Fix ($/oz)
-0.20
-0.63
8.88
-4.07
1,269
†Source: Bloomberg, data as at November 3, 2017.
This document has been prepared by 1832 Asset Management L.P and is provided for information purposes only. Views expressed regarding a particular investment, economy, industry or market sector should not be considered an indication of trading intent of any of the mutual funds managed by 1832 Asset Management LP. These views are not to be relied upon as investment advice nor should they be considered a recommendation to buy or sell. These views are subject to change at any time based upon markets and other conditions, and we disclaim any responsibility to update such views. Information contained in this document, including information relating to interest rates, market conditions, tax rules, and other investment factors are subject to change without notice and 1832 Asset Management L.P. is not responsible to update this information. To the extent this document contains information or data obtained from third party sources, it is believed to be accurate and reliable as of the date of publication, but 1832 Asset Management L.P. does not guarantee its accuracy or reliability. Nothing in this document is or should be relied upon as a promise or representation as to the future. Investors should consult their own professional advisor for specific investment advice tailored to their needs when planning to implement an investment strategy to ensure that individual circumstances are considered properly and action is taken based on the latest available information. ® Registered trademarks of The Bank of Nova Scotia, used under licence.
3652-2017-1103 WEH r1
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