Economic highlights just in you should be aware of

HIGHLIGHTS OF THE WEEK

 

     UNITED STATES

   Risk appetite was on the mend this week with stock markets recouping all of last week’s losses. Even the disappointing U.S. housing data released this week did not push markets down.

       Existing home sales in February gave up some of their previous gains, but a nascent recovery seems to be taking place as the overall trend remains upwards. In contrast, new home sales do not show any signs of turning around. The divergence in trends is not surprising, as the new market faces fierce competition from foreclosed homes, which sell at a discount.

         But, this week also delivered some good news about initial jobless claims. The four-week moving average, a less volatile gauge, dropped to its lowest level since July 2008.

 

CANADA

         Three government budgets were on tap this week: federal, New Brunswick, and Saskatchewan. The first (our analysis here) is unlikely to pass, bringing about a likely federal election in early May. The other two offer a stark contrast in provincial fortunes, with a slew of fiscal austerity measures in New Brunswick (our analysis here) while further tax relief was provided in Saskatchewan (our analysis here). With few expectations of either tax relief or sharp austerity, the Ontario budget, forthcoming on Tuesday (our preview here), will likely sit somewhere in between.

       Canadian retail sales fell by 0.3% M/M in January. Volumes fell by 0.6% M/M. Consumer durables such as vehicles and home-related items led the way down. This was a second consecutive broad-based monthly decline, providing further evidence of consumer fatigue at this stage of the economic recovery – which is a dominant theme in our forecasts. Thankfully, other sources of economic activity such as business investment and exports are still likely to push real GDP growth above 3% in the first quarter.

Information is for your use the way it should be placed and used. Good infomration to keep in mind on how we are doing so far.

We have some great mortgage deal:

3 year fixed 3.35%….4 year fixed 3.55%…Variable Mortgage Prime – .95 = 2.05%

Like always feel free to email your questions.

 

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