Market Watch – August 3, 2018

There’s also good news for the Canadian economy, as Statistics Canada reported Tuesday that real GDP in May rose 0.5% month-over-month, the biggest one-month gain in roughly two years. The strong May numbers should keep the Bank of Canada on course to raise interest rates. The BoC’s next rate decision will come in early September, on the heels of Canada’s second-quarter GDP numbers. Turning to commodities, oil prices fell for a third day on Thursday, following a surprise increase in U.S. crude inventories that added to existing worries over the rapid rise in global crude supplies.

Meanwhile, copper prices fell for the fifth time in the past six sessions on Thursday, largely in response to mounting trade tensions between Washington and Beijing. Finally, the Bank of England this week raised its benchmark interest rate for only the second time in a decade, as inflation concerns took precedence over Brexit worries and the brewing global trade war. BoE officials raised the central bank’s policy rate 25 basis points to 0.75%. The increase takes the benchmark rate to its highest level since 2009.

Markets

Dow Loses Ground, TSX Up Slightly

It was a mixed week for North American markets. For the four days covered in this report, the Dow lost 125 points to close at 25,326, the S&P 500 climbed 8 points to end at 2,827 while the tech-heavy Nasdaq added 66 points to settle at 7,803. In Canada, the TSX rose 15 points over the period to close at 16,409.

Big Picture – By Bill Curry

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Market Watch – August 3, 2018

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