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:
· Markets reacted positively to developments that the U.S. and Mexico had reached a trade deal. Details still need to be finalized, including Canada’s position. A revised, trilateral agreement looks unlikely to be achieved today.
· Data was broadly positive this week. Second quarter GDP was revised up slightly, and after-tax corp. profits rose to the highest y/y pace since 2012. A 0.2% July rise in real spending marks a good start to third quarter consumption.
· Core PCE rose 2% y/y in July. Steady inflation, holding at or near target since March, gives the Fed scope to continue on with its gradual reduction in stimulus. The next Fed hike is expected to come in September.