The Wrap Up – Monday Morning Market Musings

Last week was a broad-based increase for equities in Canada, and as is often the case, the resources and financials sectors led the way. Trump’s activities spurred gold upward with fears of political instability. His infrastructure plan and buy-America rhetoric drove industrials upward. His desire to reduce or eliminate the Dodd-Frank Act and reduce financial costs and controls could eliminate restrictions and costs for most firms, especially banks.

The Canadian economy created nearly 50,000 jobs in January, and unemployment fell by 0.1% to 6.8%. The U.S. markets continued to set records for the reasons above, and Trump’s declaration to reduce corporate taxes may be ready sooner than planned. It is also important to note that for the current quarterly earnings season a significant number of firms are beating forecasts and reporting profits above analysts’ projections.

This upcoming week in Canada, manufacturing data and real estate sales from the Canadian Real Estate Association will be released. In the U.S., a more significant week awaits as economic data with inflation, producer prices, housing data, retail sales, manufacturing and production are to be released. On top of that, Federal Reserve Chair, Janet Yellen, will make her semi-annual report to Congress.

I hope that you enjoy the above average temperatures in Winnipeg this week – historically the temperature hovers around -15 at this time of year while gradually heating up as we head into March and towards a long-anticipated spring.

Take care,

Kevin

 

 

 

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