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Canada Market Outlook

GoC yields were lower amid yield declines globally, as Canada's bonds kept pace with the rally in Treasuries, outpacing core European sovereigns. The 10-year had tumbled 5 bps to 1.48%, although it had backed-up from opening levels in the 1.455% region. Risk off trading was supported by the Reserve Bank of Australia's surprise 25 bps rate cut to 1.75% and weaker than expected PMIs from China and the U.K. Elsewhere, Japan was closed for a holiday, which thinned trading overnight. European stocks were lower across the board, with the Euro Stoxx down 1.9%. Meanwhile, crude oil was lower at near $44.40 on NYMEX after seeing a short-lived peak at near $45.35 overnight. The loonie was weaker amid softer oil and a risk-off backdrop, with USD-CAD closing in on 1.2600 from a low of 1.2467 overnight. Equities were on track to open lower, with the S&P/TSX 60 future index down 8 points alongside declines in U.S. equity futures. Today's calendar has Governor Poloz in a panel discussion this morning. There will be no webcast or press conference, so information will be limited. Action Economics doubts he will say anything fresh in terms of policy or growth outlook.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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