The credit rating agency downgraded its outlook on China’s government bonds from stable to negative, citing rising government debt, falling currency reserves and uncertainty over authorities’ capacity to implement structural reforms. Chinese markets ignored these concerns, closing the day up by 4.5%.
South of the border, favourites Hillary Clinton and Donald Trump came out ahead on Super Tuesday. However, Ted Cruz won in Texas, Oklahoma and Alaska: a sign that the Republican race is by no means over.
Yesterday, we learned that the Canadian economy grew 0.5% in December, much more than expected by markets. Though certain GDP components are cause for concern (imports fell by 8.9%, exports dropped 2.2% and business investment sank 6.5%), the USD/CAD fell to its lowest level since early December. Calling all buyers!
