The Greek debt deal is great news for the Canadian market, says Prab Sagoo, associate director at Nasdaq Advisory Services, in his weekly market commentary.
What to watch for:
- With Europe finally having coming to a resolution on Greece, we expect there to be a big move upwards in the Canadian market today. Investors will now be focusing squarely on earnings. Any stronger-than-expected earnings results may give investors an opportunity to take profits.
- The headline for Canada this week is the Bank of Canada rate announcement on Wednesday. Opinion continues to be mixed on whether Poloz will hold (at 0.75%) or cut by another 0.25% following some strength in full-time hiring numbers last week. But weakness in recent GDP and trade data will likely also weigh heavily in the decision. A rate cut would boost telcos, REITs, utilities stocks (and other interest rate sensitive names).
- The TSX was on course for a correction if a Greek deal didn’t materialize. It should now get some breathing room and see 14,400 as a support level in the near term.