As anticipated, international financial markets were calm yesterday with our neighbours to the south focusing on Independence Day festivities. In Canada, encouraged in large part by rising crude oil prices, the TSX ended the day up more than 1.3%, winning back the ground lost after the Brexit vote. The loonie was also up slightly against the USD. A Bank of Canada survey showed that business conditions at home are still not ideal. Businesses polled expect
very weak growth in sales and remain at times hesitant to hire new employees. Our economists would like to point out that spectacular economic growth is not to be expected for the remainder of the year. This morning, after a lull lasting several days, the pound sterling is once again in negative territory after the Bank of England eased credit conditions. Safe havens such as the USD or JPY, which tend to rise on such news, will bear watching. Today we’ll also be keeping an eye on U.S. Durable Goods Orders.
