For the week of March 5 – 9.
GDP in Canada came in as expected on both month-over-month and year-over-year basis in December at 0.1 percent and at 3.3 percent. However, annualized fourth quarter GDP came in a bit softer than expected at 1.7 percent versus the expected increase of 2.0 percent. Household consumption rose 2.1 percent in the fourth quarter, down from 3.7 percent in the previous quarter; marking the slowest quarter-over-quarter pace since the first quarter of 2016. General government consumption expenditure was up 2.8 percent and gross fixed capital formation was up 9.6 percent. While exports only increased by 3 percent, exports increased by 6.3 percent.
US sentiment came in slightly higher than expectations in February, according to the University of Michigan Sentiment Index. The Sentiment index was at 99.7 versus expectations of a 99.5 reading and increased from 95.7 in January. February’s reading marks the second-highest level since 2004, as ample job opportunities helped Americans sentiments. The current conditions gauge rose to 114.9 in February from 110.5 in January, while the expectations measure increase to 90 from 86.3 in January.
Canada and US government yields are trading 1 to 2bps lower with S&P futures lower (-8.0). WTI crude oil is currently trading at $61.24 per barrel. The Canadian dollar is currently trading 1.2936 against the US dollar.