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On Wednesday the Bank of Canada will make a rate announcement. What to expect? That and more from Prab Sagoo, associate director at Nasdaq Advisory Services.

Highlights:

  • The Bank of Canada will likely hold rates steady, but its monetary policy report will be closely watched for guidance on where the economy is thought to be heading and whether changes to rates are likely in the near term.

Read: Growth stagnant for small businesses: poll

  • CPI data comes out Friday; it may continue to show weak energy prices dampening any inflationary flow through.
  • The TSX has had a strong run through October so far, at +4%, though it has underperformed the S&P 500 and DJIA which are both up ~6%. There has been some consolidation just under the 13,900 level, but the index has now moved past and held above the technically important 50 day moving average for the first time since May.
  • StatsCan data showed that when North American markets dived in August, international investors, mostly U.S.-based, pulled nearly $3 billion out of Canadian equities, while Canadians retreated to the safety of U.S. equities.

Also read:

Consider penalties when mortgage shopping

What’s driving Canada’s housing price strength?

Originally published on Advisor.ca

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