For the week of August 8 to 12
The S&P 500 and Nasdaq Composite Index closed above their all-time highs, while Treasuries fell, after non-farm payrolls data showed 255k jobs were added last month. The unemployment rate held steady at 4.9%. According to Bloomberg‘s futures data, there’s now a 48 percent probability of a Fed rate increase by December, up from 37 on Thursday.
The S&P/TSX Composite Index also rose to highest close in a year, with the help of large cap companies earnings and solid economic data releases from Canada’s largest trading partner. A rally in commodities stocks have propelled Canada to the second best returns among developed markets this year, trailing only New Zealand. However, Canada’s trade deficit hit records with a greater than surveyed $3.6billion gap in June. Canada also lost 31.2k jobs vs. an estimated gain of 10k in July, unemployment rate ticked up to 6.9 percent.
In terms of data this week in Canada, we will see building permits MoM released this morning, housing starts on Tuesday, and New Housing Price Index on Thursday. In the United States, we expect data for wholesale inventories, retail sales, PPI, and University of Michigan Sentiment.
According to Baker Hughes Inc., U.S. oil rigs continue to increase for the sixth straight week, making the longest period of expansion in a year. WTI closed at $41.80 per barrel on Friday, prices were near flat from the start of the week, but are up by 1.82 percent to $42.56 per barrel this morning. OPEC’s president, Mohammed bin Saleh Al-Sada, said the group will hold informal talks next month and crude oil prices are expected to rise later part of this year. The Canadian dollar is currently trading at 1.3142 against USD, up from yesterday’s close of 1.3172. Today’s expected range is between 1.3092 – 1.3192.
Posted by Concentra Financial Markets