For the week of September 19 – 23
Equities rose around the world, led by miners and oil-related companies. However, Deutsche Bank sparked a selloff on Friday after making no intention of agreeing to pay a $14 billion fine, following a U.S. Justice Department claim to settle a probe tied to mortgage backed securities. In Asia, Bank of Japan will undertake a review of its monetary policy later this week. Also, following the release of U.S. inflation data on Friday (0.2% vs. surveyed of 0.1%), the probability of an interest hike this year was boosted by five percent points in the futures market to 54 percent.
Canada will see a light week for economic data, with July wholesale trade sales numbers released on Tuesday, followed by retail sales for July and CPI August data coming out at the end of the week.
In the U.S., we have the FOMC rate decision on Wednesday. The housing starts and building permits data releases on Tuesday, existing home sales data on Thursday, and Markit PMI’s on Friday.
WTI crude oil prices closed at $43.03 per barrel, down by 6.2 percent from last Friday’s close. It is currently trading at $43.65 per barrel , up an additional 1.4 percent. Crude rebounded from the lowest close in more than a month as Libyan fighting prevents the resumption of exports. The Canadian currency is being driven by the higher crude oil prices this morning with CAD currently trading at 1.3170, up from yesterday’s close of 1.3212. Today’s expected range is between 1.3120 – 1.3220.