Wall Street notched its biggest one-day gain in four years on Wednesday as investors set aside their fears about China to go bargain hunting for stocks. Bay Street followed suit, with the Canadian banking sector gaining 2.5% by the closing bell.
In our monthly publication yesterday, our economists made a bold prediction that the Bank of Canada would cut rates for a third time at its next monetary policy meeting in early September. Meanwhile south of the border, the Fed will probably have its hands tied with regard to raising its key rate given the uncertain global economic climate.
Central Bank representatives are preparing for the Federal Reserve's annual retreat in Jackson Hole, Wyoming. No doubt the hot topic will be how to manage the disparity between the solid performance of the U.S. economy and the economic slump in China.
The loonie is gathering strength today supported by a return to risk and rising stock indexes. This represents an excellent window of opportunity for U.S. dollar buyers this morning.
Have a great day!
- Fourchette du jour : 1.3150-1.3350
Mark Donohue