Mortgages, lending and the economy are all intertwined so I try to watch the markets as closely as possible to give informed advice to my clients on mortgages and where rates may be going.
North American markets fell Friday with the S&P 500 Index losing -5.2 points or -0.2% while the tech-heavy NASDAQ Index lost -12 points or -0.2%. Canadian markets as represented by the S&P/TSX Composite Index jumped 38 points or 0.3%. Canadian Natural Resources (CNQ-TSX) led the advancers rising 1.68%, while Detour Gold (DGC-TSX) led the decliners, falling 4.22%. There are a couple of notable data points this week in Canada that will give us a better idea of how September gross domestic product is shaping up. This morning at 8:30 wholesale trade is released which is expected to be about flat in the month. And, tomorrow retail sales are out and are expected to see a decent again. That would put September on track for 0.1%/0.2% gross domestic product growth and keep third quarter on pace for better than 3% annualized. The other data this week include the Survey of Employment, Payrolls and Hours (SEPH) for September. This survey showed the biggest drop in employment since 2009 in August, so another big negative (to contrast the huge gains in the LFS) could draw a bit more attention than usual. Note that despite the huge August decline in SEPH jobs, the year over year rate of +0.9% was above the LFS’ +0.4% pace in the same month. Prime Minister Trudeau was on the tapes yesterday from the APEC meetings in Peru. He said that he’s looking forward to working with the incoming Trump administration on trade and other issues. Trudeau also noted that he’s not going to jump to conclusions on future U.S. trade policy. At this point, for Canada and financial markets in general, it’s all wait and see how much of the rhetoric from the campaign trail actually becomes a driver for policy.
Robert Floris is a mortgage agents located on the East Hamilton Mountain and serving Hamilton, GTA, and the rest of Ontario. Robert specializes in mortgages, debt consolidation, refinancing, and new home purchases.