TSX Flat at 10 am With Healthcare, Miners The Biggest Decliners
The TSX is flat at 10 am with mixed sectors. The biggest gainers are utilities (+0.60%) and industrials (+0.19%), followed by energy (+0.15%).
Healthcare and miners are the biggest decliners, shedding 1.95% and 1.35% respectively.
RBC notes that equity markets recouped some of their losses over the past week. However, there remains an undercurrent of worry tied not only to the equity wobble (the S&P/TSX is still down 5.3% year-to-date and 3.1% over the past year, whereas the S&P500 is +3.7% and +23.1% over the same periods, respectively), but also due to the slowing in activity reflected in this week's housing data.
In terms of other factors at play in the months ahead, RBC would keep an eye on NAFTA re-negotiations (next round slated for the end of this month) and any shift in the stance of fiscal policy in the upcoming federal budget on the 27th. RBC noted BoC Deputy Governor Schembri highlighted the desirability of fiscal and monetary policy co-ordination in a speech this week and one can argue that fiscal stimulus in current times -- with monetary tightening underway -- is "somewhat contradictory or, at least, superfluous."
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