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The Weekly Bottom Line

by Sergio Mariaca on Nov 16, 2018 2:51:59 PM |Share:

Here is what happened in the Capital Markets this week.

The Weekly Bottom Line (please click link to open)

The Weekly Bottom Line, courtesy of TD Economics, includes a review of market performances, recent key economic indicators, a calendar of upcoming key economic releases, and other relevant data. The highlights from this week’s report include:

·         Equity markets were volatile again this week as concerns over global growth remained top of mind for investors.

·         Economic data continues to point to solid economic growth stateside, with little signs that global weakness has caught on domestically.

·         Inflation data for October showed a relatively benign picture. While the headline rate rose to 2.5% (from 2.2%), core inflation edged lower on the month.

The Weekly Bottom Line

by Sergio Mariaca on Nov 9, 2018 2:16:44 PM |Share:

Here is what happened in the Capital Markets this week.

The Weekly Bottom Line (please click link to open)

The Weekly Bottom Line, courtesy of TD Economics, includes a review of market performances, recent key economic indicators, a calendar of upcoming key economic releases, and other relevant data. The highlights from this week’s report include:

·         Between the midterm elections and a Fed rate decision there was plenty of news this week. But after the dust settled there was very little new information.

·         In the midterm elections, Democrats gained a majority in the House of Representatives, and Republicans tightened their grip on the Senate. A divided Congress through 2020 will temper parts of Trump’s agenda, and could make some upcoming fiscal tests more challenging.

·         As expected, the Federal Reserve left rates unchanged, with a largely unchanged statement. Recent economic data suggest the next hike is coming in December.

The Weekly Bottom Line

by Sergio Mariaca on Nov 2, 2018 1:12:16 PM |Share:

Here is what happened in the Capital Markets this week.

The Weekly Bottom Line (please click link to open)

The Weekly Bottom Line, courtesy of TD Economics, includes a review of market performances, recent key economic indicators, a calendar of upcoming key economic releases, and other relevant data. The highlights from this week’s report include:

·        The U.S. labor market continues to impress – churning out jobs like nobody’s business (+250k), keeping the unemployment rate near record lows (3.7%), drawing people into the labor force (participation rate up +0.2 percentage points), and pushing up wages to boot (3.1% year-on-year – the highest since 2009)

·        The fly in the ointment? A fierce sell off in equity markets in October, putting in question the more than nine-year old stock bull market. Major stock indices closed the month down, eking out only marginal gains year-to-date.

·        Trade tension with China is one catalyst for market jitters. A phone call between Presidents Xi and Trump this week signals progress, but the jury is still out on whether a broader trade war can be avoided.

The Weekly Bottom Line

by Sergio Mariaca on Oct 26, 2018 3:29:45 PM |Share:

Here is what happened in the Capital Markets this week.

The Weekly Bottom Line (please click link to open)

The Weekly Bottom Line, courtesy of TD Economics, includes a review of market performances, recent key economic indicators, a calendar of upcoming key economic releases, and other relevant data. The highlights from this week’s report include:

·         It was a sea of red in equity markets this week as risk off sentiment set in. As it stands, downturn in October has erased all the stock market gains from the start of the year.

·         International developments didn’t help to lift investors’ spirits. The U.S. – China trade negotiations appear to have hit a stalemate, and the European Commission has rejected Italy’s government budget.

·         Domestically, the advance estimate of Q3 GDP was the only major data release this week. After an impressive Q2, the U.S. economy has downshifted slightly in Q3, but at 3.5% (annualized), growth has nonetheless remained very hot and well above potential, giving the Fed ammunition for another rate hike in December.

The Weekly Bottom Line

by Sergio Mariaca on Oct 19, 2018 2:47:50 PM |Share:

Here is what happened in the Capital Markets this week.

The Weekly Bottom Line (please click link to open)

The Weekly Bottom Line, courtesy of TD Economics, includes a review of market performances, recent key economic indicators, a calendar of upcoming key economic releases, and other relevant data. The highlights from this week’s report include:

·         Equity markets stopped hemorrhaging and partially recovered from last week’s downturn. Domestic data was predominantly underwhelming, but did little to change the status quo of a solidly-growing U.S. economy.

·         Retail sales, existing home sales and housing starts all fell in September, with figures likely swayed by Hurricane Florence. Core retail sales however, rose by 0.5%, which suggests that consumption grew at a healthy 3% (ann.) in Q3.

·         The FOMC minutes reinforced the view for continued interest rates hikes. Still, downside risks are percolating (mostly external) and the path ahead will require careful navigation.

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