149 ordspråk av Doug Porter
Doug Porter
Simply put, Canada's balance of payments remains exceptionally strong. It is very tough to make the case that the Canadian dollar is wildly overvalued when the country continues to chalk up solid current account surpluses and net inflows in foreign direct investment.
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Simply put, when the hottest sector turns tail on valuation concerns, it raises the questions about some of the valuations of other sectors as well,
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Simply put, when the hottest sector turns tail on valuation concerns, it raises the questions about some of the valuations of other sectors as well.
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So when all is said and done, there was a lot more said than done on the inflation front.
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Some evidence has emerged that inflation is starting to pick up, and there's concern that the Fed's rate increases may not have been enough so far to keep that inflation contained, ... It suggests that we may see more aggressive rate hikes rather than the gradual baby steps we've seen.
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Some of the high-flying tech stocks, and again those are the ones without earnings, turned tail around mid-afternoon in line with the share pull-back in the Nasdaq.
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Some of the weakness in the broader market was probably due to the fact that New York suffered a fairly large sell-off.
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Technology had been the big loser last week and part of this week as well. And part of that was because there was a little flutter of concern over the Fed, which I have to think was justifiable at the time. But a lot of those concerns have been put right back into bed.
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That he says 'the downside risks predominate,' however, suggests we can expect further interest-rate cuts over the course of the spring. I would expect a 50 basis point (half-percentage point) cut at the next meeting.
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The bottom line is that as long as equities remain aloft, there is precious little outside of Fed tightening to cool growth, ... And that tightening may need to be much more aggressive than the market currently expects to bring (economic) growth closer to the Fed's comfort zone of around 3.5 percent.
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The breadth wasn't terribly impressive, but certainly the headline is eye-catching. The fact that the (Toronto Stock Exchange 300 Composite Index) had yet another strong day and hit a record high.
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The central bank is more upbeat about the economy. The market expects the bank to raise interest rates next month. But I think the risks are for the bank to do more than that.
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The combination of strong full-time job growth, the low-low jobless rate, rising wage gains and a decent regional balance to the employment picture make this a very healthy report overall.
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The continued moderation in inflation has pushed down yields. The Bank of Canada doesn't sound overly concerned about inflation.
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The deepening slide in manufacturing is notable, although solid gains in other areas continue to pick up the slack. The moderation in wage growth will be welcome by the Bank of Canada.
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