Another day of Correction!
Financial markets were greatly shaken up on Friday further to disappointing manufacturing data out of China. The global reduction in risk continues this morning before the opening bell in North America, with the Shanghai Composite Index closing down 8.5%. The Dow Jones is in correction territory, oil is trading below $40 a barrel and the loonie has also not been spared, particularly against the euro. In fact, the EUR/CAD pairing reached a new high of close to 1.52. The US dollar has been fragile since Friday and the need for the Fed to raise its key rate as early as September continues to be called into question.
On the economic calendar this week, few indicators of note are scheduled in Canada. On Tuesday, Bank of Canada Deputy Governor Lawrence Schembri will give a speech on the Canadian real estate market.
South of the border, today’s speech by Atlanta Fed President Dennis Lockhart will be carefully scrutinized by market observers. The week will continue with numerous indicators, including the S&P/Case-Schiller Home Price Indices, New Home Sales for July and finally, Durable Goods Orders.
