Here is the latest market commentary provided by First National Financial LP.
Canada’s employment rate stumbled again in August with the loss of 11,000 positions. Expectations had called for an increase of 10,000. Some economists say it is a little “fishy” that a record setting loss of 112,000 private sector jobs is being off-set by a record setting number of people turning to self employment.
Given the debacle with the July figures it would be wise to wait and see what happens over the longer term.
The Bank of Canada rate remains at 1.0% — where it has been for 4 years now. The Bank sees the risks to inflation as balanced but it repeated its concerns about the continuing imbalance between household debt and income.
The European Central Bank made it clear it is still concerned about the recovery. It surprised just about everyone by trimming its extraordinarily low 0.15% policy rate down to 0.05%. More critically, the ECB is trying to drive money into the marketplace by penalizing banks with a -0.02% deposit rate.
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