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AGF provides a recap of the week’s top economic and corporate news, plus a glimpse of the week ahead.
Weekly Market Review
Bank of canada downgrades outlook
- The Bank of Canada (BoC) maintained their 0.5% policy rate, unchanged since July 2015.
- Accompanying comments were generally downbeat, citing slowing global growth and U.S. business investment.
- The BoC’s GDP forecasts were slightly decreased to 1.1% this year and 2.0% in 2017. Expectations for 2018 growth remain at 2.1%.
U.S. existing home sales spike, housing starts dive
- September’s surprise 3.2% increase in U.S. existing home sales was the first positive result in three months.
- U.S. housing starts plunged 9%, however, reporting the worst decline in nearly a decade.
- U.S. inflation ticked higher to 1.5% annualized, helped by gasoline and household utilities costs. However, core inflation was muted, moving only 0.1% higher.
China GDP rises
- China’s GDP rose 6.7% for the third consecutive quarter, suggesting some stabilization. The outcome meets China’s growth target of between 6.5-7%.
- Chinese retail sales led the gains, while industrial output weighed negatively on the results.
Other Economic News
- The ECB held rates as widely expected and President Mario Draghi offered very little on future plans until the December meeting, which will provide new projections extending to 2019.
- Canadian CPI inched up 0.1% in September, lifting annual inflation to 1.3%, as Canadian retail sales dipped 0.1% in August.
- U.K. inflation rose to 1%, the highest mark in nearly a year. Meanwhile, unemployment remains at an 11-year low of 4.9%.
Sources: Cornerstone Macro, BMO Capital Markets, Ned Davis Research
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