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:
· As widely expected, the Fed hiked rates once more this year. At the same time, the Fed’s dot plot moved lower over the forecast horizon. These changes are consistent with a softer inflation and economic outlook.
· Data came in broadly positive, with housing starts and home resales both defying weaker market expectations. Consumer spending remained hot in November, with consumption looking set to advance by a sturdy 4% (annualized) in Q4.
· The late-year equity market sell off continued this week, with looming risks for a partial government shutdown marking the latest in a series of factors that are likely to weigh on sentiment through the New Year.