- December 5, 2018
- Posted by: Joey Benedid
- Category: Market News
Yesterday’s U.S. stock market rout saw a flight from risk resulting in a shift away from riskier assets & a stronger U.S. dollar. Concerns over a China U.S. trade War truce emerged quickly and were exasperated by those looking to hedge ahead of today’s Day of Mourning for President Bush as equity & bond markets are closed in observance. Oil remains volatile ahead of tomorrow’s OPEC meetings as we await full market participation to resume then.
The Canadian dollar weakened in concert with general market sentiment and has filled the gap seen on Sunday evening’s open from Friday’s close. We get the BoC rate decision this morning where rates are anticipated to remain on hold with the market still pricing in a hike in January. The Bank should address softer data, in particular a decline in business investment in Q3, which they had originally hoped would replace softer household spending as the main driver of growth. Poloz speaks at the CFA society tomorrow (topic: Economic Progress Report and financial stability).
UPDATE:
*BOC EXPECTS CPI TO EASE MORE THAN FORECAST IN COMING MONTHS
*BOC: HOUSEHOLD CREDIT, HOUSING MARKETS APPEAR TO BE STABILIZING
*BOC: TRADE SPATS MAY BE WEIGHING MORE HEAVILY ON GLOBAL DEMAND
*CANADA ENERGY SECTOR MAY BE MATERIALLY WEAKER THAN THOUGHT: BOC
*BOC: DATA SHOW CANADA ECONOMY HAS LESS MOMENTUM GOING INTO 4Q
*BOC SAYS RATES WILL NEED TO RISE `INTO A NEUTRAL RANGE’
*BOC: APPROPRIATE PACE OF HIKES TO DEPEND ON `NUMBER OF FACTORS’
*BOC: RATE PACE FACTORS INCLUDE TRADE POLICY, RATE SENSITIVITY
*FUTURE POLICY STANCE DEPENDS ON OIL, INVESTMENT, CAPACITY: BOC